Clearway Energy (CWEN) ended the recent trading session at $32.37, demonstrating a +1.28% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.01% for the day. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.44%.
The company created by NRG Energy to acquire and operate natural gas, solar and wind plants's stock has dropped by 2.47% in the past month, exceeding the Oils-Energy sector's loss of 3.12% and lagging the S&P 500's gain of 0.86%.
Analysts and investors alike will be keeping a close eye on the performance of Clearway Energy in its upcoming earnings disclosure. On that day, Clearway Energy is projected to report earnings of -$0.19 per share, which would represent a year-over-year decline of 733.33%. Meanwhile, our latest consensus estimate is calling for revenue of $310.58 million, up 21.32% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.21 per share and a revenue of $1.42 billion, signifying shifts of +194.67% and 0%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Clearway Energy. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.17% higher within the past month. Right now, Clearway Energy possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Clearway Energy is presently being traded at a Forward P/E ratio of 45.24. This expresses a premium compared to the average Forward P/E of 18.98 of its industry.
It is also worth noting that CWEN currently has a PEG ratio of 1.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Alternative Energy - Other industry stood at 1.15 at the close of the market yesterday.
The Alternative Energy - Other industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 41% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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