Canadian Solar (CSIQ) Outpaces Stock Market Gains: What You Should Know
Canadian Solar (CSIQ) closed at $19.12 in the latest trading session, marking a +1.32% move from the prior day. This move outpaced the S&P 500's daily gain of 0.37%. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq added 0.08%.
Prior to today's trading, shares of the solar wafers manufacturer had gained 2.22% over the past month. This has outpaced the Oils-Energy sector's loss of 5.36% and the S&P 500's loss of 0.19% in that time.
Wall Street will be looking for positivity from CSIQ as it approaches its next earnings report date. On that day, CSIQ is projected to report earnings of -$0.44 per share, which would represent a year-over-year decline of 161.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $470.77 million, down 66.96% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.40 per share and revenue of $3.58 billion. These totals would mark changes of -26.83% and -4.43%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CSIQ. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.41% lower. CSIQ currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CSIQ has a Forward P/E ratio of 7.86 right now. For comparison, its industry has an average Forward P/E of 21.38, which means CSIQ is trading at a discount to the group.
Also, we should mention that CSIQ has a PEG ratio of 0.25. 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. Solar stocks are, on average, holding a PEG ratio of 0.95 based on yesterday's closing prices.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.