In This Article:
Clearway Energy (CWEN) closed the most recent trading day at $29.14, moving -0.14% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 2.13%. Meanwhile, the Dow gained 1.65%, and the Nasdaq, a tech-heavy index, added 2.61%.
The company created by NRG Energy to acquire and operate natural gas, solar and wind plants's shares have seen an increase of 11.03% over the last month, surpassing the Oils-Energy sector's loss of 5.54% and the S&P 500's loss of 9.57%.
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. Simultaneously, our latest consensus estimate expects the revenue to be $316.5 million, showing a 20.34% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.70 per share and a revenue of $1.53 billion, signifying shifts of -6.67% and +11.73%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Clearway Energy. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Clearway Energy has a Forward P/E ratio of 41.99 right now. Its industry sports an average Forward P/E of 18.17, so one might conclude that Clearway Energy is trading at a premium comparatively.
Investors should also note that CWEN has a PEG ratio of 1.55 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Alternative Energy - Other industry held an average PEG ratio of 2.13.