The most recent trading session ended with Clearway Energy (CWEN) standing at $26.58, reflecting a +1.03% shift from the previouse trading day’s closing. This move lagged the S&P 500’s daily gain of 1.26%. On the other hand, the Dow registered a gain of 0.8%, and the technology-centric Nasdaq increased by 1.77%.
Heading into today, shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants had lost 8.07% over the past month, lagging the Oils-Energy sector’s loss of 5.1% and the S&P 500’s loss of 2.82% 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’s earnings per share (EPS) are projected to be $0.12, reflecting a 62.5% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $308.01 million, up 23.7% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Clearway Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, the Zacks Consensus EPS estimate remained stagnant. Clearway Energy currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Clearway Energy is currently trading at a Forward P/E ratio of 47.12. This expresses a premium compared to the average Forward P/E of 17.47 of its industry.
Also, we should mention that CWEN has a PEG ratio of 1.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Alternative Energy – Other industry had an average PEG ratio of 1.84 as trading concluded yesterday.
The Alternative Energy – Other industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 73, positioning it in the top 30% of all 250+ industries.
This article was originally published here.
