Canadian Solar to Expand in Spain With 164MW Solar Project

Canadian Solar Inc.CSIQ recently announced its contract win to supply 164 megawatts (MW) of solar photovoltaic (PV) modules for the Escatrón Solar power project, which has a total capacity of 350 megawatts peak (MWp) and is owned by COBRA Group, a subsidiary of ACS Group in Spain.

The company will supply nearly 481,900 high-efficiency MaxPower modules (CS6U-P 345/350 W) for this project. It claims the 72-cell polycrystalline module to be the best solution for this kind of large solar projects. The company expects to commence the shipment of the modules in September 2018 and the utility scale solar project is expected to start commercial operations by 2019.

Canadian Solar is optimistic about the solar market in Europe and is looking forward to cater to growing demand for clean and affordable solar energy.

International Portfolio: An Upside

Currently, the company has multiple late-stage 2.3 gigawatt-peak (GWp) utility-scale solar power projects in its pipeline including those under construction. On the global front, the company serves a geographically-diverse customer base spread across its key markets in the United States, China, Japan, the U.K. and Canada as well as the emerging market opportunities in Brazil, India, Mexico, South Africa and the Middle East.

Thanks to its ongoing research and development initiatives the company introduced three of its next generation solar modules at Intersolar Europe held from Jun 20 to Jun 22 in Munich, Germany. The three modules introduced are BiKu, HiKu poly and HiDM (High-Density Module) modules.

Such a robust portfolio expansion is likely to boost the company's revenue generation capability, evident from its top-line improvement of more than 50% in the first half of 2018 year over year. Considering the international solar projects coupled with the launch of new solar modules, we may anticipate the company to continue with a strong revenue growth momentum in the upcoming quarters as well.

Importance of Renewable

Renewable Energy source has been gaining momentum globally. Wind and solar power have been two of the fastest growing sources of electricity generation on the international front over the past decade. As per International Energy Agency (IEA), the power generation via solar PV witnessed a record growth of 34% in 2017. Also, the IEA anticipates an average annual growth of solar power generation of nearly 17% between 2017 and 2030 time frame.

Price Movement

In the past three months, shares of Canadian Solar have outperformed the Zacks Solar industry . The stock has rallied 20.4% compared with the industry's increase of 5.1%.

Zacks Rank & Stocks to Consider

Canadian Solar currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the Zack Oil-Energy Sector are Ecopetrol S.A. EC , Oasis Midstream Partners LP OMP and Shell Midstream Partners, L.P. SHLX , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Ecopetrol's earrings are expected to grow 14.6% over the period of 3-5 years. The stock has seen the Zacks Consensus Estimate for 2018 earnings being revised 16.2% upward from $1.79 per share to $2.08 over the past 60 days.

Oasis Midstream's earrings are expected to rise 11% over the long-term period (3-5 years). The consensus estimate for 2018 bottom line has moved 4.6% north from $1.74 per unit to $1.82 over the past 60 days.

Shell Midstream's earrings are expected to improve 3% over the long haul (3-5 years). The consensus mark for current-year earnings has been raised 7.1% from $1.27 per unit to $1.36 over the past 60 days.

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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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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