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Clearway Energy (CWEN) Stock Sinks As Market Gains: What You Should Know
Clearway Energy (CWEN - Free Report) closed at $30.23 in the latest trading session, marking a -0.26% move from the prior day. This change lagged the S&P 500's daily gain of 1.3%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 7.48%.
Coming into today, shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants had lost 7.51% in the past month. In that same time, the Oils-Energy sector lost 8.16%, while the S&P 500 lost 2.95%.
Clearway Energy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.12, up 57.14% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $246.62 million, up 15.24% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.95 per share and revenue of $1.34 billion, which would represent changes of +152.28% and +12.77%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Clearway Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 31.05% higher. Clearway Energy currently has a Zacks Rank of #2 (Buy).
Digging into valuation, Clearway Energy currently has a Forward P/E ratio of 15.54. This valuation marks a discount compared to its industry's average Forward P/E of 18.04.
Also, we should mention that CWEN has a PEG ratio of 1.55. 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 was holding an average PEG ratio of 1.59 at yesterday's closing price.
The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.