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CWEN or BE: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Alternative Energy - Other sector have probably already heard of Clearway Energy (CWEN - Free Report) and Bloom Energy (BE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Clearway Energy has a Zacks Rank of #2 (Buy), while Bloom Energy has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CWEN is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CWEN currently has a forward P/E ratio of 46.88, while BE has a forward P/E of 69.01. We also note that CWEN has a PEG ratio of 1.73. 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. BE currently has a PEG ratio of 2.76.
Another notable valuation metric for CWEN is its P/B ratio of 0.96. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BE has a P/B of 13.31.
Based on these metrics and many more, CWEN holds a Value grade of B, while BE has a Value grade of F.
CWEN has seen stronger estimate revision activity and sports more attractive valuation metrics than BE, so it seems like value investors will conclude that CWEN is the superior option right now.
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CWEN or BE: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Alternative Energy - Other sector have probably already heard of Clearway Energy (CWEN - Free Report) and Bloom Energy (BE - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Clearway Energy has a Zacks Rank of #2 (Buy), while Bloom Energy has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CWEN is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CWEN currently has a forward P/E ratio of 46.88, while BE has a forward P/E of 69.01. We also note that CWEN has a PEG ratio of 1.73. 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. BE currently has a PEG ratio of 2.76.
Another notable valuation metric for CWEN is its P/B ratio of 0.96. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BE has a P/B of 13.31.
Based on these metrics and many more, CWEN holds a Value grade of B, while BE has a Value grade of F.
CWEN has seen stronger estimate revision activity and sports more attractive valuation metrics than BE, so it seems like value investors will conclude that CWEN is the superior option right now.