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Sectors & IndustriesUtilitiesUtilities - 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...
OverviewZen RatingPriceValueGrowth
FinancialsMomentumSentimentForecastDividendsDue Diligence
C
Independent Power Producers is Zen Rated C and is the 86th ranked industry out of 145 stock market industries
Learn how the Zen Ratings work
Ticker
Company
Zen Rating
Growth
Market Cap
Revenue
EBITDA
Earnings
EPS
Rev. Y/Y
Rev. 5Y
Earn. Y/Y
Earn. 5Y
Earnings Date
TLN
TALEN ENERGY CORP
$17.66B$2.30B$733.00M$226.00M$5.125.70%N/A-73.44%N/A
NRG
NRG ENERGY INC
$31.21B$29.78B$3.33B$1.37B$6.845.91%26.31%68.47%-15.37%
PAM
PAMPA ENERGY INC
$4.77B$1.88B$683.00M$619.00M$11.508.31%6.96%109.09%3.90%
TAC
TRANSALTA CORP
$4.61B$1.77B$572.86M-$119.29M-$0.46-12.29%2.02%N/AN/A
VST
VISTRA CORP
$60.70B$17.19B$5.25B$960.00M$2.845.69%7.85%-48.27%9.43%
KEN
KENON HOLDINGS LTD
$2.90B$775.30M$727.91M$494.67M$9.385.51%16.81%N/A10.91%2025-11-28
DGXX
DIGI POWER X INC
$166.58M$32.20M-$7.46M-$18.95M-$0.55-15.98%N/AN/AN/A
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Independent Power Producer Stocks FAQ

What are the best independent power producer stocks to buy right now in Nov 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. Talen Energy (NASDAQ:TLN)


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

Talen Energy (NASDAQ:TLN) has a Due Diligence Score of 31, which is -2 points lower than the independent power producer industry average of 33.

TLN passed 11 out of 33 due diligence checks and has average fundamentals. Talen Energy has seen its stock return 88.04% over the past year, overperforming other independent power producer stocks by 28 percentage points.

Talen Energy has an average 1 year price target of $428.92, an upside of 10.95% from Talen Energy's current stock price of $386.57.

Talen Energy stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Talen Energy, 58.33% have issued a Strong Buy rating, 33.33% have issued a Buy, 8.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Nrg Energy (NYSE:NRG)


Nrg Energy (NYSE:NRG) 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 Nrg Energy (NYSE:NRG) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Nrg Energy (NYSE:NRG) has a Due Diligence Score of 39, which is 6 points higher than the independent power producer industry average of 33.

NRG passed 15 out of 38 due diligence checks and has average fundamentals. Nrg Energy has seen its stock return 72.72% over the past year, overperforming other independent power producer stocks by 13 percentage points.

Nrg Energy has an average 1 year price target of $204.60, an upside of 25.64% from Nrg Energy's current stock price of $162.84.

Nrg Energy stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Nrg Energy, 60% have issued a Strong Buy rating, 20% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Pampa Energy (NYSE:PAM)


Pampa Energy (NYSE:PAM) 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 Pampa Energy (NYSE:PAM) is: Value: B, Growth: C, Momentum: C, Sentiment: D, Safety: C, Financials: C, and AI: C.

Pampa Energy (NYSE:PAM) has a Due Diligence Score of 79, which is 46 points higher than the independent power producer industry average of 33.

PAM passed 26 out of 33 due diligence checks and has strong fundamentals. Pampa Energy has seen its stock return 23.29% over the past year, underperforming other independent power producer stocks by -37 percentage points.

Pampa Energy has an average 1 year price target of $92.00, an upside of 5% from Pampa Energy's current stock price of $87.62.

Pampa Energy stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Pampa Energy, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% 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 0.81%, which is the same as the independent power producer industry average of 0.67%. 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 19.3% indicates that its dividend yield is sustainable for the long-term.

2. Transalta (NYSE:TAC)


Transalta (NYSE:TAC) has an annual dividend yield of 0.69%, which is the same as the independent power producer industry average of 0.67%. 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 -42.9% 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 0.5%, which is the same as the independent power producer industry average of 0.67%. 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 31.5% indicates that its dividend yield is sustainable for the long-term.

Why are independent power producer stocks down?

Independent power producer stocks were down -1.41% in the last day, and down -2.66% over the last week.

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

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 B. 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 gained 23.29% in the past year. It has underperformed other stocks in the independent power producer industry by -37 percentage points.

2. Nrg Energy (NYSE:NRG)


Nrg Energy (NYSE:NRG) 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.

Nrg Energy 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.

Nrg Energy's stock has gained 72.72% in the past year. It has overperformed other stocks in the independent power producer industry by 13 percentage points.

3. Vistra (NYSE:VST)


Vistra (NYSE:VST) 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.

Vistra 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.

Vistra's stock has gained 22.88% in the past year. It has underperformed other stocks in the independent power producer industry by -37 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 18.11% 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), 100% are rated C (Hold), 0% 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 47.55x.
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