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Brookfield Renewable (BEP) Soars 7.7%: Is Further Upside Left in the Stock?

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Brookfield Renewable Energy Partners (BEP - Free Report) units rallied 7.7% in the last trading session to close at $25.80. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.1% gain over the past four weeks.

Brookfield Renewable Partners continues to gain from building and owning renewable energy assets, with a strong emphasis on generating stable cash flows from long-term contracts. It has a strong balance sheet and diverse sources of capital to fund long-term projects.

The firm, with low-cost assets in developed markets, has established consistent and repeatable capabilities to generate value for its unitholders. The firm invests opportunistically and flexibly into the most attractive opportunities globally and scales up its development to meet rising demand from customers.

This operator of hydroelectric and wind power generation facilities is expected to post quarterly loss of $0.29 per unit in its upcoming report, which represents a year-over-year change of -3.6%. Revenues are expected to be $979.03 million, up 18% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Brookfield Renewable, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BEP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Brookfield Renewable belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, NextEra Energy (NEE - Free Report) , closed the last trading session 0.4% lower at $71.90. Over the past month, NEE has returned 2.6%.

NextEra's consensus EPS estimate for the upcoming report has changed +1.7% over the past month to $0.99. Compared to the company's year-ago EPS, this represents a change of +3.1%. NextEra currently boasts a Zacks Rank of #3 (Hold).


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