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Clearway Energy (CWEN) Laps the Stock Market: Here's Why

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In the latest close session, Clearway Energy (CWEN - Free Report) was up +2.1% at $33.96. This move outpaced the S&P 500's daily gain of 0.19%. Elsewhere, the Dow gained 0.66%, while the tech-heavy Nasdaq lost 0.03%.

Shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants witnessed a loss of 2.61% over the previous month, trailing the performance of the Oils-Energy sector with its loss of 1.05%, and the S&P 500's gain of 0.54%.

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 -$0.19 per share. This would mark a year-over-year decline of 733.33%. Our most recent consensus estimate is calling for quarterly revenue of $310.58 million, up 21.32% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.21 per share and revenue of $1.43 billion, which would represent changes of +194.67% and 0%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Clearway Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 9.77% higher. Clearway Energy is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Clearway Energy is currently trading at a Forward P/E ratio of 45.54. This represents a premium compared to its industry average Forward P/E of 17.59.

Also, we should mention that CWEN has a PEG ratio of 1.16. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Alternative Energy - Other stocks are, on average, holding a PEG ratio of 1.16 based on yesterday's closing prices.

The Alternative Energy - Other industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 88, placing it within the top 36% of over 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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