Sunrun (RUN) shares ended the last trading session 12.6% higher at $14.42. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.6% loss over the past four weeks.
Sunrun stock skyrocketed after the company announced a partnership with Tesla and Renew Home to create a massive virtual power plant network capable of delivering more than 16 GW of flexible electricity capacity. The initiative will aggregate residential batteries, solar systems, and connected home devices to help utilities and data centers meet rising electricity demand, particularly from AI-driven infrastructure.
The deal strengthens RUN’s position as a distributed energy platform rather than just a residential solar installer. By leveraging its growing fleet of home batteries to provide grid services, the company can unlock new recurring revenue opportunities.
This solar energy products distributor is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of -90.7%. Revenues are expected to be $727.75 million, up 27.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Sunrun, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RUN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Sunrun is a member of the Zacks Solar industry. One other stock in the same industry, Enphase Energy (ENPH), finished the last trading session 1.3% higher at $47.82. ENPH has returned -29.4% over the past month.
For Enphase Energy, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.46. This represents a change of -33.3% from what the company reported a year ago. Enphase Energy currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
