In the latest market close, Clearway Energy (CWEN) reached $25.83, with a -0.39% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.76%. Meanwhile, the Dow experienced a drop of 0.28%, and the technology-dominated Nasdaq saw a decrease of 1.2%.
The the stock of company created by NRG Energy to acquire and operate natural gas, solar and wind plants has fallen by 2.45% in the past month, lagging the Oils-Energy sector's gain of 4.11% and the S&P 500's gain of 2.71%.
Market participants will be closely following the financial results of Clearway Energy in its upcoming release. The company plans to announce its earnings on February 24, 2025. It is anticipated that the company will report an EPS of $0.13, marking a 59.38% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $308.01 million, indicating a 23.7% increase compared to the same quarter of the previous year.
Any recent changes to analyst estimates for Clearway Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.09% higher. Right now, Clearway Energy possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Clearway Energy is currently trading at a Forward P/E ratio of 45.49. For comparison, its industry has an average Forward P/E of 20.03, which means Clearway Energy is trading at a premium to the group.
Meanwhile, CWEN's PEG ratio is currently 1.67. 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. As the market closed yesterday, the Alternative Energy - Other industry was having an average PEG ratio of 1.98.
The Alternative Energy - Other industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 46, positioning it in the top 19% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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