Talen Energy Corporation (TLN) shares soared 11.8% in the last trading session to close at $419.07. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.5% gain over the past four weeks.
Talen Energy announced that it will acquire about 2.6 GW of natural gas generation assets in Ohio and Indiana for $3.45 billion, significantly expanding its presence in the western PJM market and strengthening its portfolio with efficient baseload power plants.
The acquisition is expected to strengthen the company’s capacity to support large-scale customers. It is also expected to be immediately accretive to adjusted free cash flow per share, providing solid cash flow while preserving balance-sheet strength and improving overall financial performance.
This power generation and infrastructure company is expected to post quarterly earnings of $2.82 per share in its upcoming report, which represents a year-over-year change of +55.8%. Revenues are expected to be $690.13 million, up 47.8% 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 Talen Energy Corporation, the consensus EPS estimate for the quarter has been revised 31.6% 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 TLN 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 >>>>
Talen Energy Corporation is part of the Zacks Alternative Energy - Other industry. Excelerate Energy (EE), another stock in the same industry, closed the last trading session 1.5% higher at $32.87. EE has returned 23.2% in the past month.
Excelerate Energy's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.29. Compared to the company's year-ago EPS, this represents a change of -27.5%. Excelerate Energy currently boasts a Zacks Rank of #3 (Hold).
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Talen Energy Corporation (TLN): Free Stock Analysis Report Excelerate Energy, Inc. (EE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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