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

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Clearway Energy (CWEN - Free Report) closed the most recent trading day at $30.71, moving +1.09% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.38%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, lost 4.19%.

Heading into today, shares of the company created by NRG Energy to acquire and operate natural gas, solar and wind plants had lost 0.36% over the past month, lagging the Oils-Energy sector's gain of 0.6% and the S&P 500's gain of 3.78% in that time.

Investors will be hoping for strength from Clearway Energy as it approaches its next earnings release. In that report, analysts expect Clearway Energy to post earnings of $0.76 per share. This would mark year-over-year growth of 119.69%. Our most recent consensus estimate is calling for quarterly revenue of $398.08 million, up 8.17% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.78 per share and revenue of $1.4 billion. These totals would mark changes of +147.72% and +17.78%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Clearway Energy. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 4.26% lower within the past month. Clearway Energy currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Clearway Energy has a Forward P/E ratio of 17.11 right now. Its industry sports an average Forward P/E of 21.71, so we one might conclude that Clearway Energy is trading at a discount comparatively.

The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% of all 250+ industries.

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

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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