We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NEP vs. CWEN: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors interested in Alternative Energy - Other stocks are likely familiar with NextEra Energy Partners (NEP - Free Report) and Clearway Energy (CWEN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, NextEra Energy Partners has a Zacks Rank of #2 (Buy), while Clearway Energy has a Zacks Rank of #3 (Hold). This means that NEP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
NEP currently has a forward P/E ratio of 20.50, while CWEN has a forward P/E of 43.40. We also note that NEP has a PEG ratio of 2.05. 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. CWEN currently has a PEG ratio of 6.55.
Another notable valuation metric for NEP is its P/B ratio of 0.60. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CWEN has a P/B of 2.25.
These are just a few of the metrics contributing to NEP's Value grade of B and CWEN's Value grade of C.
NEP has seen stronger estimate revision activity and sports more attractive valuation metrics than CWEN, so it seems like value investors will conclude that NEP is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
NEP vs. CWEN: Which Stock Should Value Investors Buy Now?
Investors interested in Alternative Energy - Other stocks are likely familiar with NextEra Energy Partners (NEP - Free Report) and Clearway Energy (CWEN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, NextEra Energy Partners has a Zacks Rank of #2 (Buy), while Clearway Energy has a Zacks Rank of #3 (Hold). This means that NEP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
NEP currently has a forward P/E ratio of 20.50, while CWEN has a forward P/E of 43.40. We also note that NEP has a PEG ratio of 2.05. 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. CWEN currently has a PEG ratio of 6.55.
Another notable valuation metric for NEP is its P/B ratio of 0.60. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CWEN has a P/B of 2.25.
These are just a few of the metrics contributing to NEP's Value grade of B and CWEN's Value grade of C.
NEP has seen stronger estimate revision activity and sports more attractive valuation metrics than CWEN, so it seems like value investors will conclude that NEP is the superior option right now.