In the latest close session, Clearway Energy (CWEN) was down 4.26% at $30.98. The stock's change was less than the S&P 500's daily loss of 0.38%. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 0.67%.
Coming into today, shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants had gained 14.06% in the past month. In that same time, the Oils-Energy sector gained 3.6%, while the S&P 500 gained 4.06%.
The investment community will be paying close attention to the earnings performance of Clearway Energy in its upcoming release. On that day, Clearway Energy is projected to report earnings of $0.44 per share, which would represent year-over-year growth of 41.94%. Simultaneously, our latest consensus estimate expects the revenue to be $431.88 million, showing a 11.14% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.72 per share and revenue of $1.45 billion. These totals would mark changes of -4% and +6%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Clearway Energy. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 12.93% fall in the Zacks Consensus EPS estimate. Clearway Energy presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Clearway Energy is presently trading at a Forward P/E ratio of 44.71. This indicates a premium in contrast to its industry's Forward P/E of 20.62.
It is also worth noting that CWEN currently has a PEG ratio of 1.43. 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. As of the close of trade yesterday, the Alternative Energy - Other industry held an average PEG ratio of 2.38.
The Alternative Energy - Other industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 163, this industry ranks in the bottom 35% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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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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