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...
B
Independent Power Producers is Zen Rated B and is the 46th ranked industry out of 145 stock market industries
Learn how the Zen Ratings work
Ticker
Company
Market Cap
Dividend Yield
Payout Ratio
Last Dividend
Annual Dividend
Dividend Percentile
Dividend Dropped Count (L10Y)
Ex-dividend Date
Div. Payment Date
PAM
PAMPA ENERGY INC
$4.06BN/A0.00%N/AN/AN/AN/A
NRG
NRG ENERGY INC
$18.44B1.31%32.30%$0.4075$1.2226%2
VST
VISTRA CORP
$36.11B0.83%12.20%$0.2235$0.8816%0
KEN
KENON HOLDINGS LTD
$1.48BN/A33.50%$3.8000N/AN/A2
TAC
TRANSALTA CORP
$2.51B1.42%52.90%$0.0600$0.1228%2
DGXX
DIGI POWER X INC
$30.07MN/A0.00%N/AN/AN/AN/A

Independent Power Producer Stocks FAQ

What are the best independent power producer stocks to buy right now in Apr 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. Pampa Energy (NYSE:PAM)


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

Pampa Energy (NYSE:PAM) has a Due Diligence Score of 62, which is 23 points higher than the independent power producer industry average of 39.

PAM passed 20 out of 33 due diligence checks and has strong fundamentals. Pampa Energy has seen its stock return 61.34% over the past year, overperforming other independent power producer stocks by 15 percentage points.

Pampa Energy has an average 1 year price target of $93.50, an upside of 25.3% from Pampa Energy's current stock price of $74.62.

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.

2. Nrg Energy (NYSE:NRG)


Nrg Energy (NYSE:NRG) is the #2 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: B, Growth: B, Momentum: B, Sentiment: D, Safety: C, Financials: B, and AI: C.

Nrg Energy (NYSE:NRG) has a Due Diligence Score of 33, which is -6 points lower than the independent power producer industry average of 39. Although this number is below the industry average, our proven quant model rates NRG as a "B".

NRG passed 14 out of 38 due diligence checks and has average fundamentals. Nrg Energy has seen its stock return 32.25% over the past year, underperforming other independent power producer stocks by -14 percentage points.

Nrg Energy has an average 1 year price target of $124.00, an upside of 33.2% from Nrg Energy's current stock price of $93.09.

Nrg Energy stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Nrg Energy, 62.5% have issued a Strong Buy rating, 12.5% have issued a Buy, 25% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Vistra (NYSE:VST)


Vistra (NYSE:VST) 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 Vistra (NYSE:VST) is: Value: C, Growth: B, Momentum: C, Sentiment: F, Safety: C, Financials: B, and AI: C.

Vistra (NYSE:VST) has a Due Diligence Score of 49, which is 10 points higher than the independent power producer industry average of 39.

VST passed 19 out of 38 due diligence checks and has strong fundamentals. Vistra has seen its stock return 59.65% over the past year, overperforming other independent power producer stocks by 13 percentage points.

Vistra has an average 1 year price target of $169.71, an upside of 59.33% from Vistra's current stock price of $106.52.

Vistra stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Vistra, 57.14% have issued a Strong Buy rating, 28.57% have issued a Buy, 14.29% 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 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. Kenon Holdings (NYSE:KEN)


Kenon Holdings (NYSE:KEN) has an annual dividend yield of N/A, which is N/A percentage points lower than the independent power producer industry average of 1.19%. Kenon Holdings's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Kenon Holdings's dividend has shown consistent growth over the last 10 years.

Kenon Holdings's dividend payout ratio of 33.5% indicates that its dividend yield is sustainable for the long-term.

2. Vistra (NYSE:VST)


Vistra (NYSE:VST) has an annual dividend yield of 0.83%, which is the same as the independent power producer industry average of 1.19%. 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 12.2% indicates that its dividend yield is sustainable for the long-term.

Why are independent power producer stocks down?

Independent power producer stocks were down -5.42% in the last day, and down -3.64% 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. Nrg Energy (NYSE:NRG)


Nrg Energy (NYSE:NRG) 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.

Nrg Energy has a valuation score of 29, which is -9 points higher than the independent power producer industry average of 38. It passed 2 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates NRG a Valuation Rating of "B".

Nrg Energy's stock has gained 32.25% in the past year. It has underperformed other stocks in the independent power producer industry by -14 percentage points.

2. Pampa Energy (NYSE:PAM)


Pampa Energy (NYSE:PAM) 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.

Pampa Energy has a valuation score of 57, which is 19 points higher than the independent power producer industry average of 38. It passed 4 out of 7 valuation due diligence checks.

Pampa Energy's stock has gained 61.34% in the past year. It has overperformed other stocks in the independent power producer industry by 15 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 29, which is -9 points higher than the independent power producer industry average of 38. It passed 2 out of 7 valuation due diligence checks.

Vistra's stock has gained 59.65% in the past year. It has overperformed other stocks in the independent power producer industry by 13 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 rise by 44.31% over the next year.

0% of independent power producer stocks have a Zen Rating of A (Strong Buy), 33.33% of independent power producer stocks are rated B (Buy), 33.33% are rated C (Hold), 33.33% 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 15.2x.
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.