Clearway Energy (CWEN) closed the latest trading day at $25.08, indicating a +1.05% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq lost 0.23%.
Coming into today, shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants had lost 7.28% in the past month. In that same time, the Oils-Energy sector lost 8.42%, while the S&P 500 lost 3.45%.
Investors will be eagerly watching for the performance of Clearway Energy in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.12, reflecting a 62.5% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $308.01 million, indicating a 23.7% growth compared to the corresponding quarter of the prior year.
Investors should also note any recent changes to analyst estimates for Clearway Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Clearway Energy is carrying a Zacks Rank of #2 (Buy).
Looking at valuation, Clearway Energy is presently trading at a Forward P/E ratio of 44.45. For comparison, its industry has an average Forward P/E of 17.35, which means Clearway Energy is trading at a premium to the group.
Also, we should mention that CWEN has a PEG ratio of 1.66. 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 1.78 as of yesterday's close.
The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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