Clearway Energy (CWEN) ended the recent trading session at $32.22, demonstrating a +1.93% change from the preceding day’s closing price. The stock exceeded the S&P 500, which registered a gain of 0.94% for the day. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 1.52%.
Prior to today’s trading, shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants had gained 4.12% lagged the Oils-Energy sector’s gain of 4.54% and outpaced the S&P 500’s gain of 1.67%.
Analysts and investors alike will be keeping a close eye on the performance of Clearway Energy in its upcoming earnings disclosure. The company’s upcoming EPS is projected at $0.7, signifying a 62.79% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $445.36 million, up 21.68% from the year-ago period.
CWEN’s full-year Zacks Consensus Estimates are calling for earnings of $1.1 per share and revenue of $1.5 billion. These results would represent year-over-year changes of +46.67% and +9.61%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Clearway Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there’s been no change in the Zacks Consensus EPS estimate. Clearway Energy currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Clearway Energy is presently being traded at a Forward P/E ratio of 28.79. This indicates a premium in contrast to its industry’s Forward P/E of 19.74.
It is also worth noting that CWEN currently has a PEG ratio of 0.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. As of the close of trade yesterday, the Alternative Energy – Other industry held an average PEG ratio of 2.23.
The Alternative Energy – Other industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 180, positioning it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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