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In the latest market close, Clearway Energy (CWEN) reached $30.79, with a +0.62% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 4.84% for the day. Elsewhere, the Dow saw a downswing of 3.98%, while the tech-heavy Nasdaq depreciated by 5.97%.
Shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants witnessed a gain of 12.42% over the previous month, beating the performance of the Oils-Energy sector with its gain of 3.42% and the S&P 500's loss of 4.7%.
The upcoming earnings release of Clearway Energy will be of great interest to investors. It is anticipated that the company will report an EPS of -$0.30, marking a 1400% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $310.81 million, reflecting a 18.18% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.75 per share and a revenue of $1.5 billion, signifying shifts of 0% and +9.7%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Clearway Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 7.84% rise in the Zacks Consensus EPS estimate. Currently, Clearway Energy is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Clearway Energy currently has a Forward P/E ratio of 40.83. Its industry sports an average Forward P/E of 17.9, so one might conclude that Clearway Energy is trading at a premium comparatively.
We can also see that CWEN currently has a PEG ratio of 1.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Alternative Energy - Other was holding an average PEG ratio of 1.59 at yesterday's closing price.