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Clearway Energy (CWEN) Benefits From Focus on North America
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Clearway Energy Inc. (CWEN - Free Report) continues to benefit from its focus on North American operations and modern utility-scale clean renewable projects that ensure high fleet availability and low maintenance costs.
However, this Zacks Rank #3 (Hold) company faces risks related to its dependence on third-party assets for electric interconnection and transmission.
Tailwinds
Clearway Energy is primarily focused on North America that saves it from foreign currency fluctuation risks. In addition, North America provides an excellent opportunity to expand its operations through the acquisition of renewable and natural gas-fired generation assets.
CWEN owns and operates utility-scale renewable energy and natural gas-fired generation, as well as thermal and other infrastructure assets with low operating risks and stable cash flows. Focus on the core assets, coupled with industry knowledge, should enable the company to increase its operational efficiency and maximize financial performance.
Courtesy of Clearway Energy’s modern nature of the generation portfolio, which includes a substantial number of solar and wind generation assets, it expects 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. CWEN needs to incur lower operating expenses to generate electricity.
Headwinds
The company relies on certain electric interconnection and transmission facilities that are not owned or controlled by it. Clearway Energy also depends on others for the wholesale of electricity from its electric generation assets. A failure or delay in the operation or development of these facilities or a significant increase in the cost of the development of such facilities could result in a loss of revenues.
Also, if solar or wind conditions are unfavorable, the company’s electricity generation and revenues from renewable generation facilities may be substantially below its expectations.
Price Performance
In the past three months, shares of the company have risen 1.6% compared with the industry’s 9.5% growth.
CEG’s long-term (three to five year) earnings growth rate is 14.59%. The Zacks Consensus Estimate for CEG’s 2024 earnings per share (EPS) indicates an increase of 52.7% year over year.
The Zacks Consensus Estimate for NEP’s 2024 earnings per unit indicates an increase of 455.9% year over year. The Zacks Consensus Estimate for 2024 sales indicates year-over-year growth of 1.9%.
The Zacks Consensus Estimate for HES’ 2024 EPS indicates an increase of 103.6% year over year. The company delivered an average earnings surprise of 35.7% in the last four quarters.
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Clearway Energy (CWEN) Benefits From Focus on North America
Clearway Energy Inc. (CWEN - Free Report) continues to benefit from its focus on North American operations and modern utility-scale clean renewable projects that ensure high fleet availability and low maintenance costs.
However, this Zacks Rank #3 (Hold) company faces risks related to its dependence on third-party assets for electric interconnection and transmission.
Tailwinds
Clearway Energy is primarily focused on North America that saves it from foreign currency fluctuation risks. In addition, North America provides an excellent opportunity to expand its operations through the acquisition of renewable and natural gas-fired generation assets.
CWEN owns and operates utility-scale renewable energy and natural gas-fired generation, as well as thermal and other infrastructure assets with low operating risks and stable cash flows. Focus on the core assets, coupled with industry knowledge, should enable the company to increase its operational efficiency and maximize financial performance.
Courtesy of Clearway Energy’s modern nature of the generation portfolio, which includes a substantial number of solar and wind generation assets, it expects 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. CWEN needs to incur lower operating expenses to generate electricity.
Headwinds
The company relies on certain electric interconnection and transmission facilities that are not owned or controlled by it. Clearway Energy also depends on others for the wholesale of electricity from its electric generation assets. A failure or delay in the operation or development of these facilities or a significant increase in the cost of the development of such facilities could result in a loss of revenues.
Also, if solar or wind conditions are unfavorable, the company’s electricity generation and revenues from renewable generation facilities may be substantially below its expectations.
Price Performance
In the past three months, shares of the company have risen 1.6% compared with the industry’s 9.5% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the same sector are Constellation Energy Corporation (CEG - Free Report) , NextEra Energy Partners (NEP - Free Report) and Hess (HES - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CEG’s long-term (three to five year) earnings growth rate is 14.59%. The Zacks Consensus Estimate for CEG’s 2024 earnings per share (EPS) indicates an increase of 52.7% year over year.
The Zacks Consensus Estimate for NEP’s 2024 earnings per unit indicates an increase of 455.9% year over year. The Zacks Consensus Estimate for 2024 sales indicates year-over-year growth of 1.9%.
The Zacks Consensus Estimate for HES’ 2024 EPS indicates an increase of 103.6% year over year. The company delivered an average earnings surprise of 35.7% in the last four quarters.