Back to top

Image: Bigstock

Clearway Energy (CWEN) Moves 6.8% Higher: Will This Strength Last?

Read MoreHide Full Article

Clearway Energy (CWEN - Free Report) shares ended the last trading session 6.8% higher at $35.38. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.7% gain over the past four weeks.

Clearway Energy Group has announced the execution of three long-term power purchase agreements with Google for a combined 1.17 GW of carbon-free energy across projects in Missouri, Texas, and West Virginia. Under the agreements, Clearway Energy will supply carbon-free power to regional grids in SPP, ERCOT, and PJM for up to 20 years to support Google’s data center operations. These contracts enhance revenue visibility, strengthen long-term cash flow stability, and meaningfully improve the company’s growth outlook.

Clearway Energy’s generation portfolio is largely composed of modern solar and wind assets. These newer renewable facilities require relatively low maintenance capital expenditures, giving the company a cost advantage while supporting stronger operating margins.

This company created by NRG Energy to acquire and operate natural gas, solar and wind plants is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of -800%. Revenues are expected to be $304.76 million, up 19.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Clearway Energy, 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 CWEN 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 >>>>

Clearway Energy is a member of the Zacks Alternative Energy - Other industry. One other stock in the same industry, Cheniere Energy Partners, L.P. (CQP - Free Report) , finished the last trading session 0.1% higher at $55.76. CQP has returned 4.4% over the past month.

Cheniere Energy Partners, L.P.'s consensus EPS estimate for the upcoming report has changed +0.5% over the past month to $1.03. Compared to the company's year-ago EPS, this represents a change of -1.9%. Cheniere Energy Partners, L.P. currently boasts a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Cheniere Energy Partners, L.P. (CQP) - free report >>

Clearway Energy, Inc. (CWEN) - free report >>

Published in