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CWEN or BE: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Alternative Energy - Other sector might want to consider either Clearway Energy (CWEN - Free Report) or Bloom Energy (BE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Clearway Energy and Bloom Energy are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. 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. But this is just one piece of the puzzle for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
CWEN currently has a forward P/E ratio of 36.18, while BE has a forward P/E of 73.33. We also note that CWEN has a PEG ratio of 2.58. 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 2.93.
Another notable valuation metric for CWEN is its P/B ratio of 1.09. 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 5.38.
These metrics, and several others, help CWEN earn a Value grade of B, while BE has been given a Value grade of D.
CWEN stands above BE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CWEN is the superior value option right now.
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CWEN or BE: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Alternative Energy - Other sector might want to consider either Clearway Energy (CWEN - Free Report) or Bloom Energy (BE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Clearway Energy and Bloom Energy are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. 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. But this is just one piece of the puzzle for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
CWEN currently has a forward P/E ratio of 36.18, while BE has a forward P/E of 73.33. We also note that CWEN has a PEG ratio of 2.58. 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 2.93.
Another notable valuation metric for CWEN is its P/B ratio of 1.09. 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 5.38.
These metrics, and several others, help CWEN earn a Value grade of B, while BE has been given a Value grade of D.
CWEN stands above BE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CWEN is the superior value option right now.