Brookfield Renewable (BEP) Surges 5.1%: Is This an Indication of Further Gains?

Brookfield Renewable Energy Partners (BEP) shares ended the last trading session 5.1% higher at $31.44. 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 14.1% gain over the past four weeks.

Brookfield, the United States Government, and Cameco Corporation have recently announced a partnership aimed at driving long-term value through the deployment of Westinghouse Electric Company's nuclear reactor technology. Under this strategic collaboration, at least $80 billion worth of new reactors will be built across the United States, revitalizing the nation’s nuclear power industrial base. This initiative is expected to significantly strengthen Brookfield’s growth prospects.

Brookfield Renewable Partners continues to benefit from its strategy of building and owning high-quality renewable energy assets, focusing on generating stable cash flows through long-term contracts. It operates low-cost assets across developed markets, which generates value for the unitholders. 

This operator of hydroelectric and wind power generation facilities is expected to post quarterly loss of $0.46 per share in its upcoming report, which represents a year-over-year change of -43.8%. Revenues are expected to be $897.36 million, up 11.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Brookfield Renewable, the consensus EPS estimate for the quarter has been revised 2.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on BEP 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 belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, Pinnacle West (PNW), closed the last trading session 1.2% lower at $90.68. Over the past month, PNW has returned 4.7%.

Pinnacle West's consensus EPS estimate for the upcoming report has changed -122.2% over the past month to $3.04. Compared to the company's year-ago EPS, this represents a change of -9.8%. Pinnacle West currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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