In This Article:
Clearway Energy (CWEN) closed the latest trading day at $30.26, indicating a -0.53% change from the previous session's end. This change was narrower than the S&P 500's daily loss of 1.12%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 2.04%.
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 11.18% over the past month. This has outpaced the Oils-Energy sector's gain of 3.39% and the S&P 500's loss of 2.91% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Clearway Energy in its upcoming earnings disclosure. The company is forecasted to report an EPS of -$0.38, showcasing a 1800% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $316.5 million, indicating a 20.34% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $0.75 per share and a revenue of $1.53 billion, demonstrating changes of 0% and +11.73%, respectively, from the preceding year.
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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 31.49% upward. Clearway Energy currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Clearway Energy is at present trading with a Forward P/E ratio of 40.59. This expresses a premium compared to the average Forward P/E of 19.32 of its industry.
It's also important to note that CWEN currently trades at a PEG ratio of 1.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Alternative Energy - Other industry had an average PEG ratio of 2.4 as trading concluded yesterday.