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Clearway Energy (CWEN) closed at $30.04 in the latest trading session, marking a +1.25% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.22%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.33%.
Prior to today's trading, shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants had gained 11.04% over the past month. This has outpaced the Oils-Energy sector's loss of 1.22% and the S&P 500's loss of 7.48% in that time.
The investment community will be closely monitoring the performance of Clearway Energy in its forthcoming earnings report. The company's upcoming EPS is projected at -$0.38, signifying a 1800% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $316.5 million, indicating a 20.34% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.70 per share and a revenue of $1.53 billion, representing changes of -6.67% and +11.73%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Clearway Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 21.93% rise in the Zacks Consensus EPS estimate. Clearway Energy is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Clearway Energy has a Forward P/E ratio of 42.69 right now. This indicates a premium in contrast to its industry's Forward P/E of 19.03.
One should further note that CWEN currently holds a PEG ratio of 1.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Alternative Energy - Other industry stood at 2.37 at the close of the market yesterday.