Brookfield Renewable Corporation (BEPC) shares ended the last trading session 6.1% higher at $43.39. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 17.6% gain over the past four weeks.
BEPC announced a transformational partnership to deliver long-term value using Westinghouse Nuclear Reactor Technology. At least $80 billion worth of new reactors will be built across the United States as part of the new strategic agreement. This increases the company’s addressable market and facilitates its entry into the nuclear industry. Because the announcement presents a strong growth story for the company and indicates potential earnings growth in the future, it has contributed to the increase in BEPC's stock price.
The company continues to benefit from rising clean energy demand, a broad mix of renewable assets, and long-term, inflation-linked power contracts.
This company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +96.9%. Revenues are expected to be $1.16 billion, down 21% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Brookfield Renewable, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BEPC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Brookfield Renewable is a member of the Zacks Alternative Energy - Other industry. One other stock in the same industry, Vital Energy (VTLE), finished the last trading session 4.8% lower at $15.09. VTLE has returned -6.9% over the past month.
For Vital Energy, the consensus EPS estimate for the upcoming report has changed +5.9% over the past month to $1.59. This represents a change of -1.2% from what the company reported a year ago. Vital Energy currently has a Zacks Rank of #3 (Hold).
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Brookfield Renewable Corporation (BEPC): Free Stock Analysis Report Vital Energy, Inc. (VTLE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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