Clearway Energy (CWEN) Rises Higher Than Market: Key Facts

Clearway Energy (CWEN) ended the recent trading session at $38.10, demonstrating a +1.76% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 1.15%. Elsewhere, the Dow gained 1.38%, while the tech-heavy Nasdaq added 1.38%.

Shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants have depreciated by 5.48% over the course of the past month, underperforming the Oils-Energy sector's gain of 8.53%, and outperforming the S&P 500's loss of 5.69%.

The investment community will be closely monitoring the performance of Clearway Energy in its forthcoming earnings report. In that report, analysts expect Clearway Energy to post earnings of -$0.41 per share. This would mark a year-over-year decline of 1466.67%. At the same time, our most recent consensus estimate is projecting a revenue of $322.42 million, reflecting a 8.19% rise from the equivalent quarter last year.

CWEN's full-year Zacks Consensus Estimates are calling for earnings of $0.67 per share and revenue of $1.63 billion. These results would represent year-over-year changes of -53.15% and +13.81%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Clearway Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 5.38% downward. At present, Clearway Energy boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Clearway Energy is presently trading at a Forward P/E ratio of 56.01. This valuation marks a premium compared to its industry average Forward P/E of 18.79.

It's also important to note that CWEN currently trades at a PEG ratio of 1.62. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Alternative Energy - Other stocks are, on average, holding a PEG ratio of 1.91 based on yesterday's closing prices.

The Alternative Energy - Other industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 88, positioning it in the top 36% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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