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Clearway Energy (CWEN) Gains As Market Dips: What You Should Know

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In the latest trading session, Clearway Energy (CWEN - Free Report) closed at $36.07, marking a +1.95% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.06%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq lost 0.06%.

Shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants witnessed a gain of 9.13% over the previous month, beating the performance of the Oils-Energy sector with its gain of 4.06%, and the S&P 500's gain of 1.99%.

Analysts and investors alike will be keeping a close eye on the performance of Clearway Energy in its upcoming earnings disclosure. The company is predicted to post an EPS of -$0.21, indicating a 800% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $304.76 million, up 19.05% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $2.18 per share and a revenue of $1.42 billion, demonstrating changes of +190.67% and 0%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Clearway Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.28% decrease. Clearway Energy presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Clearway Energy has a Forward P/E ratio of 50.08 right now. This indicates a premium in contrast to its industry's Forward P/E of 19.44.

Investors should also note that CWEN has a PEG ratio of 1.34 right now. 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 industry currently had an average PEG ratio of 1.34 as of yesterday's close.

The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 43% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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