Should You Buy Clearway Energy Inc (CWEN) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
36.210
1 Day change
-0.17%
52 Week Range
37.400
Analysis Updated At
2026/01/28
Buy for a beginner long-term investor focused on income + steady growth. CWEN is being supported by strong Wall Street upgrades/target raises and a clear dividend-driven narrative (5%+ yield with 7%–8% expected CAFD/share growth through 2030). Near-term, the stock looks extended (RSI ~78 and trading into resistance), so returns may be choppy over the next few weeks—but given your impatience and long-term preference, CWEN is still a good buy right now (ideally with staged entries rather than all-at-once).
Technical Analysis
Trend is bullish but stretched.
- Moving averages: Bullish alignment (SMA_5 > SMA_20 > SMA_200) confirms an uptrend.
- MACD: Histogram positive (0.342) but “positively contracting,” suggesting upside momentum is slowing (often happens before consolidation/pullbacks).
- RSI(6): 78.284 indicates overbought/extended conditions (despite the provided label), increasing the odds of a near-term pause.
- Key levels: Pivot 35.299. Price is around/above R1 37.01 with next resistance at R2 38.068; support at 35.299 then 33.588.
- Pattern-based probability (next month): biased negative (approx. -5.44%), consistent with ‘overbought’ mean-reversion risk.
**Intellectia Proprietary Trading Signals**
- [AI Stock Picker](module://ai_stock_pick): No signal on given stock today.
- [SwingMax](module://swingmax): No signal on given stock today.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Options positioning reads bullish/“risk-on.”
- Put/Call (Open Interest) = 0.19: calls heavily dominate outstanding positions → bullish longer positioning.
- Put/Call (Volume) = 0.35: call volume dominates daily flow → bullish near-term sentiment.
- IV: 30D IV ~24.97 with IV percentile ~10.4 / IV rank ~8: options are relatively cheap vs recent history, suggesting complacency and less hedging demand (bullish sentiment, but it can also mean downside protection is underbought).
- Volume vs avg: ~110% of 30D average, indicating active interest without extreme speculation.
Technical Summary
Sell
3
Buy
8
Positive Catalysts
Dividend + growth narrative: News highlights 5%+ dividend yield and expected 7%–8% annual cash flow growth through
Analyst support: Multiple target raises and an upgrade (CIBC to Outperformer) reinforce confidence.
Demand backdrop: UBS notes renewables supply-demand imbalance and rising electricity demand (e.g., AI data centers) supporting long-term contracting and asset demand.
Earnings catalyst ahead: Next reported earnings (QDEC
on 2026-02-23 after hours—potential catalyst if CAFD/guidance stays strong.
Neutral/Negative Catalysts
Near-term technical stretch: RSI is overbought and price is pressing into resistance (~37.01–38.07), increasing pullback/consolidation odds.
Growth quality mixed in latest quarter: Revenue declined YoY and gross margin fell, which may raise questions about underlying operating momentum.
Pattern-based forward bias: Similar-pattern model implies slightly negative skew over the next week/month.
No supportive flow signals from insiders/hedge funds: Both described as neutral (no strong confirming “smart money” trend).
Financial Performance
Latest quarter: 2025/Q3.
- Revenue: $429M, down 11.73% YoY (top-line weakness).
- Net income: $236M, up 555.56% YoY.
- EPS: 2, up 545.16% YoY.
- Gross margin: 29.14%, down 24.27% YoY.
Interpretation: Profit/EPS surged while revenue and margin declined—this mix often suggests non-recurring items, asset sales, or financing/one-time effects helped earnings. For long-term investors, the key is whether CAFD/dividend coverage and forward guidance remain strong (which analysts are signaling positively).
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent trend: clearly improving.
- Multiple firms raised price targets (BofA to $38, UBS to $39, Roth to $39–$40, Morgan Stanley to $50) and CIBC upgraded to Outperformer with a $38 target.
- Wall Street ‘pros’ view: strong long-term visibility to 7%–8% annual CAFD/share growth (2025–2030), execution on drop-downs/M&A at attractive CAFD yields, and supportive power-demand trends.
- Wall Street ‘cons’ view: valuation/near-term upside may be more limited at current levels versus targets clustered around ~$38–$40 (except MS at $50), and quarter-to-quarter fundamentals can look noisy (revenue/margin down).
Influential trading check:
- Hedge funds: Neutral (no significant trend last quarter).
- Insiders: Neutral (no significant trend last month).
- Congress trading (last 90 days): No recent congress trading data available.
Wall Street analysts forecast CWEN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CWEN is 39.29 USD with a low forecast of 34 USD and a high forecast of 50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
Wall Street analysts forecast CWEN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CWEN is 39.29 USD with a low forecast of 34 USD and a high forecast of 50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 36.270
Low
34
Averages
39.29
High
50
Current: 36.270
Low
34
Averages
39.29
High
50
CIBC
Neutral -> Outperformer
upgrade
$38
AI Analysis
2025-12-16
Reason
CIBC
Price Target
$38
AI Analysis
2025-12-16
upgrade
Neutral -> Outperformer
Reason
CIBC upgraded Clearway Energy to Outperformer from Neutral with a $38 price target.
BofA
Buy
maintain
$37 -> $38
2025-12-10
Reason
BofA
Price Target
$37 -> $38
2025-12-10
maintain
Buy
Reason
BofA raised the firm's price target on Clearway Energy to $38 from $37 and keeps a Buy rating on the shares after having hosted an investor fireside chat with CEO Craig Cornelius, who emphasized Clearway's strong visibility for 7%-8% annual cash available for distribution per share growth from 2025 through 2030. As a result, the firm increased its cash available for distribution per share estimates for 2026-2027 "slightly," the analyst tells investors.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for CWEN
