Clearway Energy (CWEN) closed at $32.11 in the latest trading session, marking a +1.49% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.8%. Elsewhere, the Dow gained 0.94%, while the tech-heavy Nasdaq added 0.97%.
Coming into today, shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants had gained 3.03% in the past month. In that same time, the Oils-Energy sector gained 3.8%, while the S&P 500 gained 5.12%.
Analysts and investors alike will be keeping a close eye on the performance of Clearway Energy in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.7, marking a 62.79% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $445.36 million, up 21.68% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.1 per share and a revenue of $1.5 billion, indicating changes of +46.67% and +9.61%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Clearway Energy. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Clearway Energy is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Clearway Energy is holding a Forward P/E ratio of 28.82. Its industry sports an average Forward P/E of 19.11, so one might conclude that Clearway Energy is trading at a premium comparatively.
Investors should also note that CWEN has a PEG ratio of 0.75 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CWEN's industry had an average PEG ratio of 2.1 as of yesterday's close.
The Alternative Energy - Other industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 158, placing it within the bottom 36% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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