High-dividend-yielding Clearway Energy (NYSE:CWENa) (CWEN) is expected to witness increasing demand for its renewable energy services as governments worldwide continue to take measures to reduce carbon emissions. However, can the stock’s price continue to gain in the coming months considering the company’s pedestrian fundamentals? Let’s find out.Clearway Energy Group LLC’s subsidiary, Clearway Energy, Inc. (CWEN), is one of the largest renewable energy owners in the United States, with more than 4,200 net MW of installed wind and solar generation projects. Over the past three months, the stock of the Princeton, N.J.-based company has gained 11.6% to close Friday’s trading session at $30.51. Investors’ optimism around the company’s acquisition of Mt. Storm on April 26—a 264 MW asset in Grant County, West Virginia—was the primary driver of the performance.
The demand for wind and solar energy has increased steadily over the past few months, and renewables were the second-most prevalent U.S. electricity source last year.
However, CWEN’s shares have lost 5.9% over the past six months and 4.5% so far this year. Its net income has declined significantly in the latest quarter. In addition, the company anticipates lower volumetric sales on a normalized weather basis at the thermal segment through 2021. So, its near-term prospects look uncertain.