Clearway Energy Shares Surge on Major Google Power Agreement

Clearway Energy US18539C2044

Shares of Clearway Energy closed Friday's trading session at $36.07, marking a solid gain of 1.95% for the day. The equity continues to draw strength from a recently announced multi-billion dollar infrastructure partnership with Google, a development that has triggered a technical breakout and prompted analysts to revise their valuations upward.

The company's momentum intensified as the market further digested the implications of this transformative deal. During Friday's session, the stock traded between $34.71 and $36.47. This advance builds upon a significant price jump earlier in the week, which was sparked by Clearway Energy Group's disclosure of three long-term power purchase agreements (PPAs) with the tech giant.

The catalyst for this rally is a concrete agreement covering 1.17 gigawatts (GW) of carbon-free energy projects located in Missouri, Texas, and West Virginia. This strategic partnership represents a total infrastructure investment exceeding $2.4 billion. The market's positive reception was further validated on Friday when Investor's Business Daily upgraded the stock's Relative Strength Rating from 63 to 74, a technical indicator that confirms the improved price performance trend.

Strong fundamental data supports the current valuation. Clearway recently reported quarterly earnings per share (EPS) of $2.00, dramatically surpassing consensus estimates of $0.32. While quarterly revenue of $429 million reflected an 11.7% year-over-year decline, the Google deal provides long-term cash flow visibility with contract durations stretching up to 20 years. Furthermore, the company raised its quarterly dividend to $0.4528, translating to an annual payout of $1.81 and a current yield of approximately 5.02%.

Sector Trend and Forward-Looking Assessment

This partnership highlights a critical sector trend: the exploding power demand from hyperscale data centers. By securing 1.17 GW of capacity, Clearway is positioning itself as a primary beneficiary of this infrastructure build-out. Although the projects are scheduled to come online between 2027 and 2028, the market is already pricing in this future value.

Analysts find the valuation compelling. The current price near $36.07 sits below the average analyst price target range of $37.25 to $39.25. The "A+" grade assigned for EPS Revisions on Friday also points to rising profit expectations among researchers. The focus now shifts to execution, with construction on the new projects slated to begin in 2026. The next significant milestone will be the Q4 2025 earnings report, for which analysts are forecasting revenue of around $304.76 million.