Clearway Energy (CWEN) closed the most recent trading day at $28.07, moving -1.92% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.27%, and the tech-heavy Nasdaq lost 0.07%.
Heading into today, shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants had lost 4.28% over the past month, lagging the Oils-Energy sector's gain of 2.71% 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's earnings per share (EPS) are projected to be $0.53, reflecting a 70.97% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $443 million, down 8.85% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.8 per share and a revenue of $1.44 billion, indicating changes of +6.67% and +4.88%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Clearway Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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. Over the past month, the Zacks Consensus EPS estimate has shifted 9.1% downward. Currently, Clearway Energy is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Clearway Energy is at present trading with a Forward P/E ratio of 35.82. This denotes a premium relative to the industry average Forward P/E of 20.02.
One should further note that CWEN currently holds a PEG ratio of 1.15. 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. CWEN's industry had an average PEG ratio of 2.43 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 182, finds itself in the bottom 27% echelons of all 250+ industries.
