In the latest close session, Clearway Energy (CWEN) was down 1.08% at $28.37. The stock's change was less than the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.45%.
Shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants have depreciated by 4.88% over the course of the past month, underperforming the Oils-Energy sector's loss of 0.15%, and the S&P 500's gain of 3.07%.
The upcoming earnings release of Clearway Energy will be of great interest to investors. The company is expected to report EPS of $0.53, up 70.97% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $443 million, down 8.85% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.89 per share and a revenue of $1.44 billion, representing changes of +18.67% and +4.88%, respectively, from the prior 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 business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 14.74% fall in the Zacks Consensus EPS estimate. Clearway Energy is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Clearway Energy's current valuation metrics, including its Forward P/E ratio of 32.41. This expresses a premium compared to the average Forward P/E of 18.25 of its industry.
It's also important to note that CWEN currently trades at a PEG ratio of 0.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Alternative Energy – Other was holding an average PEG ratio of 2.34 at yesterday's closing price.
The Alternative Energy – Other industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 165, finds itself in the bottom 34% echelons of all 250+ industries.
