Clearway Energy (CWEN) closed the latest trading day at $28.15, indicating a -0.25% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 1.67%. Elsewhere, the Dow saw an upswing of 1.07%, while the tech-heavy Nasdaq appreciated by 2.5%.
Shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants have depreciated by 7.23% over the course of the past month, outperforming the Oils-Energy sector's loss of 10.69% and lagging the S&P 500's loss of 6.57%.
The investment community will be paying close attention to the earnings performance of Clearway Energy in its upcoming release. The company is slated to reveal its earnings on April 30, 2025. In that report, analysts expect Clearway Energy to post earnings of -$0.30 per share. This would mark a year-over-year decline of 1400%. In the meantime, our current consensus estimate forecasts the revenue to be $310.81 million, indicating a 18.18% growth compared to the corresponding quarter of the prior year.
CWEN's full-year Zacks Consensus Estimates are calling for earnings of $0.75 per share and revenue of $1.5 billion. These results would represent year-over-year changes of 0% and +9.7%, respectively.
Any recent changes to analyst estimates for Clearway Energy should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 7.84% higher within the past month. Clearway Energy is currently a Zacks Rank #3 (Hold).
In terms of valuation, Clearway Energy is presently being traded at a Forward P/E ratio of 37.65. This expresses a premium compared to the average Forward P/E of 17.92 of its industry.
One should further note that CWEN currently holds a PEG ratio of 1.13. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Alternative Energy - Other industry stood at 1.13 at the close of the market yesterday.
The Alternative Energy - Other industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 173, this industry ranks in the bottom 31% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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