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Why Calpine (CPN) Could Be Positioned for a Surge

Zacks Equity Research

Calpine Corporation CPN is major U.S. power company that delivers clean, cost-effective, reliable and fuel-efficient electricity to customers. The stock could be an interesting play for investors because, not only does it have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on CPN’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Calpine could be a solid choice for investors.

Current Quarter Estimates for CPN

In the past 30 days, two estimates have gone higher for Calpine while none have gone lower in the same time period. The trend has been pretty favorable too, with estimates narrowing from a loss of 18 cents a share 30 days ago, to a loss of 14 cents today, a move of 22.2%.

Current Year Estimates for CPN

Meanwhile, Calpine’s current year figures are also looking quite promising, with two estimates moving higher in the past month, compared to one lower. The consensus estimate trend has also seen a boost for this time frame, increasing from 45 cents per share 30 days ago to 52 cents per share today, an increase of 15.6%.

Calpine Corporation Price and Consensus

Calpine Corporation Price and Consensus | Calpine Corporation Quote

Bottom Line

The stock has also started to move higher lately, adding 5.1% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #3 (Hold) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank stocks here.

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