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Clearway Energy (CWEN) Stock Sinks As Market Gains: Here's Why

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In the latest close session, Clearway Energy (CWEN - Free Report) was down 1.08% at $28.37. The stock's change was less than the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.45%.

Shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants have depreciated by 4.88% over the course of the past month, underperforming the Oils-Energy sector's loss of 0.15%, and the S&P 500's gain of 3.07%.

The upcoming earnings release of Clearway Energy will be of great interest to investors. The company is expected to report EPS of $0.53, up 70.97% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $443 million, down 8.85% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.89 per share and a revenue of $1.44 billion, representing changes of +18.67% and +4.88%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Clearway Energy. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 14.74% fall in the Zacks Consensus EPS estimate. Clearway Energy is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Clearway Energy's current valuation metrics, including its Forward P/E ratio of 32.41. This expresses a premium compared to the average Forward P/E of 18.25 of its industry.

It's also important to note that CWEN currently trades at a PEG ratio of 0.97. 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. The Alternative Energy - Other was holding an average PEG ratio of 2.34 at yesterday's closing price.

The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 165, finds itself in the bottom 34% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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