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...

Financials Momentum Sentiment Forecast Dividends Due Diligence

Independent Power Producers is Zen Rated C and is the 78th ranked industry out of 145 stock market industries

Ticker	Company	Market Cap	Revenue	EBITDA	Earnings	EPS	Rev. Y/Y	Rev. 5Y	Earn. Y/Y	Earn. 5Y	Earnings Date
NRG	NRG ENERGY INC	$32.57B	$29.29B	$3.42B	$1.30B	$6.44	2.65%	24.80%	-8.78%	-16.30%	2025-08-06
VST	VISTRA CORP	$70.26B	$18.10B	$6.82B	$2.23B	$6.52	35.03%	9.04%	292.77%	34.16%	2025-08-06
KEN	KENON HOLDINGS LTD	$2.52B	$760.30M	$850.91M	$601.67M	$11.41	5.77%	15.78%	N/A	111.44%	2025-09-09
PAM	PAMPA ENERGY INC	$4.24B	$1.88B	$683.00M	$619.00M	$11.50	8.31%	6.96%	109.09%	3.90%	2025-08-06
TAC	TRANSALTA CORP	$3.64B	$1.92B	$733.33M	$724.64k	$0.00	-21.93%	3.02%	-100.00%	-100.00%	2025-08-01
DGXX	DIGI POWER X INC	$98.04M	$33.32M	$500.01k	-$13.33M	-$0.43	-4.71%	N/A	N/A	N/A

Independent Power Producer Stocks FAQ

What are the best independent power producer stocks to buy right now in Jul 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 6 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

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

Nrg Energy (NYSE:NRG) has a Due Diligence Score of 41, which is 7 points higher than the independent power producer industry average of 34.

NRG passed 16 out of 38 due diligence checks and has strong fundamentals. Nrg Energy has seen its stock return 127.18% over the past year, underperforming other independent power producer stocks by -8 percentage points.

Nrg Energy has an average 1 year price target of $164.11, a downside of -1.49% from Nrg Energy's current stock price of $166.59.

Nrg Energy stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 9 analysts covering Nrg Energy, 77.78% have issued a Strong Buy rating, 0% have issued a Buy, 22.22% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Vistra (NYSE:VST)

Vistra (NYSE:VST) is the #2 top independent power producer stock out of 6 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 Vistra (NYSE:VST) is: Value: D, Growth: C, Momentum: B, Sentiment: F, Safety: C, Financials: C, and AI: C.

Vistra (NYSE:VST) has a Due Diligence Score of 44, which is 10 points higher than the independent power producer industry average of 34.

VST passed 17 out of 38 due diligence checks and has strong fundamentals. Vistra has seen its stock return 200.07% over the past year, overperforming other independent power producer stocks by 65 percentage points.

Vistra has an average 1 year price target of $183.60, a downside of -11.33% from Vistra's current stock price of $207.05.

Vistra stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Vistra, 80% have issued a Strong Buy rating, 0% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Kenon Holdings (NYSE:KEN)

Kenon Holdings (NYSE:KEN) is the #3 top independent power producer stock out of 6 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 39, which is 5 points higher than the independent power producer industry average of 34.

KEN passed 15 out of 38 due diligence checks and has average fundamentals. Kenon Holdings has seen its stock return 100.87% over the past year, underperforming other independent power producer stocks by -34 percentage points.

What are the independent power producer stocks with highest dividends?

Out of 2 independent power producer stocks that have issued dividends in the past year, the 2 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 0.75%, which is the same as the independent power producer industry average of 0.72%. 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 26.3% indicates that its dividend yield is sustainable for the long-term.

2. Vistra (NYSE:VST)

Vistra (NYSE:VST) has an annual dividend yield of 0.43%, which is the same as the independent power producer industry average of 0.72%. 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 3.01% in the last day, and up 3.3% 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 43, which is 12 points higher than the independent power producer industry average of 31. It passed 3 out of 7 valuation due diligence checks.

Pampa Energy's stock has gained 77.25% in the past year. It has underperformed other stocks in the independent power producer industry by -58 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 -2 points higher than the independent power producer industry average of 31. It passed 2 out of 7 valuation due diligence checks.

Nrg Energy's stock has gained 127.18% in the past year. It has underperformed other stocks in the independent power producer industry by -8 percentage points.

3. Vistra (NYSE:VST)

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

Vistra has a valuation score of 14, which is -17 points higher than the independent power producer industry average of 31. It passed 1 out of 7 valuation due diligence checks.

Vistra's stock has gained 200.07% in the past year. It has overperformed other stocks in the independent power producer industry by 65 percentage points.

Are independent power producer stocks a good buy now?

40% of independent power producer stocks rated by analysts are a strong buy right now. On average, analysts expect independent power producer stocks to fall by -1.03% over the next year.

0% of independent power producer stocks have a Zen Rating of A (Strong Buy), 16.67% of independent power producer stocks are rated B (Buy), 66.67% are rated C (Hold), 16.67% 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 27.46x.

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. Vistra (NYSE:VST)

3. Kenon Holdings (NYSE:KEN)

1. Nrg Energy (NYSE:NRG)

2. Vistra (NYSE:VST)

1. Pampa Energy (NYSE:PAM)

2. Nrg Energy (NYSE:NRG)

3. Vistra (NYSE:VST)

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