Sectors & Industries UtilitiesUtilities - Independent Power Producers
Best Independent Power Producer Stocks to Buy Now (2025)
Top independent power producer stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best independent power producer stocks to buy now. Learn More.

Industry: Utilities - Independent P...

Zen Rating Price Value Growth Financials Momentum Sentiment Forecast Dividends Due Diligence

Independent Power Producers is Zen Rated D and is the 115th ranked industry out of 145 stock market industries

Ticker	Company	Exchange	Industry	Market Cap	Price	1d %	EBITDA	P/E	D/E	Country
NRG	NRG ENERGY INC	NYSE	Utilities - Independent Power Producers	$32.95B	$170.36	4.00%	$2.14B	72.49x	9.53	United States
KEN	KENON HOLDINGS LTD	NYSE	Utilities - Independent Power Producers	$2.60B	$49.81	1.51%	$727.91M	5.31x	1.25	Singapore
TLN	TALEN ENERGY CORP	NASDAQ	Utilities - Independent Power Producers	$18.57B	$406.45	-2.77%	$612.00M	104.22x	3.68	United States
DGXX	DIGI POWER X INC	NASDAQ	Utilities - Independent Power Producers	$181.19M	$4.59	5.03%	-$7.46M	-8.35x	0.40	Canada
TAC	TRANSALTA CORP	NYSE	Utilities - Independent Power Producers	$5.12B	$17.27	0.23%	$623.36M	-42.22x	4.61	Canada
VST	VISTRA CORP	NYSE	Utilities - Independent Power Producers	$68.37B	$201.47	5.28%	$6.82B	30.90x	6.92	United States
PAM	PAMPA ENERGY INC	NYSE	Utilities - Independent Power Producers	$3.41B	$62.62	0.24%	$683.00M	5.45x	0.93	Argentina

Independent Power Producer Stocks FAQ

What are the best independent power producer stocks to buy right now in Oct 2025?

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best independent power producer stocks to buy right now are:

1. Nrg Energy (NYSE:NRG)

Nrg Energy (NYSE:NRG) is the #1 top independent power producer stock out of 7 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Nrg Energy (NYSE:NRG) is: Value: C, Growth: C, Momentum: C, Sentiment: D, Safety: C, Financials: C, and AI: C.

Nrg Energy (NYSE:NRG) has a Due Diligence Score of 28, which is -6 points lower than the independent power producer industry average of 34.

NRG passed 11 out of 38 due diligence checks and has average fundamentals. Nrg Energy has seen its stock return 90.82% over the past year, overperforming other independent power producer stocks by 6 percentage points.

Nrg Energy has an average 1 year price target of $199.50, an upside of 17.1% from Nrg Energy's current stock price of $170.36.

Nrg Energy stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Nrg Energy, 70% have issued a Strong Buy rating, 20% have issued a Buy, 10% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Kenon Holdings (NYSE:KEN)

Kenon Holdings (NYSE:KEN) is the #2 top independent power producer stock out of 7 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Kenon Holdings (NYSE:KEN) is: Value: D, Growth: C, Momentum: A, Sentiment: C, Safety: C, Financials: C, and AI: B.

Kenon Holdings (NYSE:KEN) has a Due Diligence Score of 31, which is -3 points lower than the independent power producer industry average of 34.

KEN passed 12 out of 38 due diligence checks and has average fundamentals. Kenon Holdings has seen its stock return 83.87% over the past year, underperforming other independent power producer stocks by -1 percentage points.

3. Talen Energy (NASDAQ:TLN)

Talen Energy (NASDAQ:TLN) is the #3 top independent power producer stock out of 7 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Talen Energy (NASDAQ:TLN) is: Value: D, Growth: C, Momentum: B, Sentiment: C, Safety: D, Financials: C, and AI: C.

Talen Energy (NASDAQ:TLN) has a Due Diligence Score of 31, which is -3 points lower than the independent power producer industry average of 34.

TLN passed 11 out of 33 due diligence checks and has average fundamentals. Talen Energy has seen its stock return 136.75% over the past year, overperforming other independent power producer stocks by 52 percentage points.

Talen Energy has an average 1 year price target of $426.46, an upside of 4.92% from Talen Energy's current stock price of $406.45.

Talen Energy stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 11 analysts covering Talen Energy, 54.55% have issued a Strong Buy rating, 36.36% have issued a Buy, 9.09% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the independent power producer stocks with highest dividends?

Out of 3 independent power producer stocks that have issued dividends in the past year, the 3 independent power producer stocks with the highest dividend yields are:

1. Nrg Energy (NYSE:NRG)

Nrg Energy (NYSE:NRG) has an annual dividend yield of 0.76%, which is the same as the independent power producer industry average of 0.61%. Nrg Energy's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Nrg Energy's dividend has shown consistent growth over the last 10 years.

Nrg Energy's dividend payout ratio of 54.8% indicates that its dividend yield is sustainable for the long-term.

2. Transalta (NYSE:TAC)

Transalta (NYSE:TAC) has an annual dividend yield of 0.62%, which is the same as the independent power producer industry average of 0.61%. Transalta's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Transalta's dividend has not shown consistent growth over the last 10 years.

Transalta's dividend payout ratio of -51.1% indicates that its dividend yield might not be sustainable for the long-term.

3. Vistra (NYSE:VST)

Vistra (NYSE:VST) has an annual dividend yield of 0.44%, which is the same as the independent power producer industry average of 0.61%. Vistra's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Vistra's dividend has shown consistent growth over the last 10 years.

Vistra's dividend payout ratio of 13.5% indicates that its dividend yield is sustainable for the long-term.

Why are independent power producer stocks up?

Independent power producer stocks were up 0.69% in the last day, and down -0.36% over the last week.

We couldn't find a catalyst for why independent power producer stocks are up.

What are the most undervalued independent power producer stocks?

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued independent power producer stocks right now are:

1. Pampa Energy (NYSE:PAM)

Pampa Energy (NYSE:PAM) is the most undervalued independent power producer stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Pampa Energy has a valuation score of 71, which is 43 points higher than the independent power producer industry average of 28. It passed 5 out of 7 valuation due diligence checks.

Pampa Energy's stock has dropped -8.15% in the past year. It has underperformed other stocks in the independent power producer industry by -93 percentage points.

2. Vistra (NYSE:VST)

Vistra (NYSE:VST) is the second most undervalued independent power producer stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Vistra has a valuation score of 29, which is 1 points higher than the independent power producer industry average of 28. It passed 2 out of 7 valuation due diligence checks.

Vistra's stock has gained 60.43% in the past year. It has underperformed other stocks in the independent power producer industry by -25 percentage points.

3. Nrg Energy (NYSE:NRG)

Nrg Energy (NYSE:NRG) is the third most undervalued independent power producer stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Nrg Energy has a valuation score of 0, which is -28 points higher than the independent power producer industry average of 28. It passed 0 out of 7 valuation due diligence checks.

Nrg Energy's stock has gained 90.82% in the past year. It has overperformed other stocks in the independent power producer industry by 6 percentage points.

Are independent power producer stocks a good buy now?

50% of independent power producer stocks rated by analysts are a strong buy right now. On average, analysts expect independent power producer stocks to rise by 13.16% over the next year.

0% of independent power producer stocks have a Zen Rating of A (Strong Buy), 0% of independent power producer stocks are rated B (Buy), 85.71% are rated C (Hold), 14.29% are rated D (Sell), and 0% are rated F (Strong Sell).

What is the average p/e ratio of the utilities - independent power producers industry?

The average P/E ratio of the utilities - independent power producers industry is 47.65x.

WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.

Independent Power Producer Stocks FAQ

1. Nrg Energy (NYSE:NRG)

2. Kenon Holdings (NYSE:KEN)

3. Talen Energy (NASDAQ:TLN)

1. Nrg Energy (NYSE:NRG)

2. Transalta (NYSE:TAC)

3. Vistra (NYSE:VST)

1. Pampa Energy (NYSE:PAM)

2. Vistra (NYSE:VST)

3. Nrg Energy (NYSE:NRG)

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