Clearway Energy (CWEN) Soars 10.8%: Is Further Upside Left in the Stock?
Clearway Energy (CWEN) shares rallied 10.8% in the last trading session to close at $20.79. 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 21.3% loss over the past four weeks.
Clearway Energy’s existing renewable assets, acquisition of renewable projects, the use of non-core asset sale proceeds to cut debts and a focus on North American operation are tailwinds for the company.
Clearway Energy’s modern nature of the generation portfolio that includes a substantial number of solar and wind generation assets, is expected to achieve high fleet availability and modest maintenance-related capital expenditure. The new and long-lived assets in the portfolio give the company a competitive advantage and boost margins.
This company created by NRG Energy to acquire and operate natural gas, solar and wind plants is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of +121.4%. Revenues are expected to be $357 million, up 5% 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 been revised 25% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. 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, Bloom Energy (BE), finished the last trading session 3.6% higher at $11.13. BE has returned -28.6% over the past month.
For Bloom Energy , the consensus EPS estimate for the upcoming report has changed -3.3% over the past month to -$0.03. This represents a change of +85% from what the company reported a year ago. Bloom Energy currently has a Zacks Rank of #3 (Hold).
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Clearway Energy, Inc. (CWEN) : Free Stock Analysis Report
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