In the latest trading session, Clearway Energy (CWEN) closed at $28.51, marking a +1.53% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.44%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq increased by 0.7%.
Shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants witnessed a loss of 6.68% over the previous month, trailing the performance of the Oils-Energy sector with its gain of 3.62%, and the S&P 500's gain of 4.03%.
Analysts and investors alike will be keeping a close eye on the performance of Clearway Energy in its upcoming earnings disclosure. The company is expected to report EPS of $0.44, up 41.94% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $431.88 million, down 11.14% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.72 per share and a revenue of $1.45 billion, representing changes of -4% and +6%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Clearway Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, the Zacks Consensus EPS estimate has shifted 12.93% downward. Currently, Clearway Energy is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Clearway Energy is currently trading at a Forward P/E ratio of 38.8. Its industry sports an average Forward P/E of 20.16, so one might conclude that Clearway Energy is trading at a premium comparatively.
We can additionally observe that CWEN currently boasts a PEG ratio of 1.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Alternative Energy - Other was holding an average PEG ratio of 2.43 at yesterday's closing price.
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 28% 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.
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Clearway Energy, Inc. (CWEN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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