Here's Why Clearway Energy (CWEN) is a Strong Momentum Stock

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Style Scores [1][2] Zacks Style Scores - The Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Cash Flow [3] - The Growth Score assesses a company's future prospects through projected earnings and sales growth [4] - The Momentum Score identifies stocks with favorable price trends, utilizing recent price changes and earnings estimate shifts [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] - Stocks with lower ranks, even with high Style Scores, may still face downward price pressure due to negative earnings forecasts [10] Company Spotlight: Clearway Energy (CWEN) - Clearway Energy Inc. operates a diversified portfolio of renewable and conventional energy generation assets in the U.S., focusing on long-term cash flow stability [11] - CWEN holds a Zacks Rank of 3 (Hold) and a VGM Score of B, with a Momentum Style Score of B, reflecting a 10.5% increase in share price over the past four weeks [12] - Recent earnings estimates for CWEN have been revised upward, with the Zacks Consensus Estimate increasing by $0.38 to $1.10 per share, and an average earnings surprise of +125.5% [12][13]