NRG Energy seen as strong Buy with growth in smart homes and rising power prices boosting future earnings.

NRG Energy remains a compelling Buy due to strong growth drivers and attractive valuation. Its smart home segment, though small in revenue share, contributes significantly to profit margins and is growing fast. Management projects 2026 EBITDA between $5.325 billion and $5.825 billion, supported by rising power prices and increased demand from data centers. The company’s lower leverage compared to peers allows continued investment in capacity and growth, including a joint venture targeting 3 GW capacity by 2032.