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Clearway Energy (CWEN) Beats Stock Market Upswing: What Investors Need to Know

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In the latest market close, Clearway Energy (CWEN - Free Report) reached $28.15, with a +1.22% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.47% for the day. Elsewhere, the Dow saw an upswing of 0.79%, while the tech-heavy Nasdaq appreciated by 0.28%.

Shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants have depreciated by 5.28% over the course of the past month, outperforming the Oils-Energy sector's loss of 6.86% and lagging the S&P 500's gain of 3.48%.

The investment community will be paying close attention to the earnings performance of Clearway Energy in its upcoming release. The company is slated to reveal its earnings on October 30, 2024. The company's earnings per share (EPS) are projected to be $0.48, reflecting a 1500% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $441.84 million, showing a 19.09% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.85 per share and revenue of $1.4 billion, indicating changes of +26.87% and +6.53%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Clearway Energy. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.04% downward. Clearway Energy presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Clearway Energy is currently exchanging hands at a Forward P/E ratio of 32.79. This denotes a premium relative to the industry's average Forward P/E of 24.2.

Meanwhile, CWEN's PEG ratio is currently 2.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Alternative Energy - Other stocks are, on average, holding a PEG ratio of 2.63 based on yesterday's closing prices.

The Alternative Energy - Other industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 20% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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