Canadian Solar (CSIQ) Gains As Market Dips: What You Should Know
Canadian Solar (CSIQ) closed the most recent trading day at $37.25, moving +0.03% from the previous trading session. This change outpaced the S&P 500's 1.51% loss on the day. Elsewhere, the Dow lost 1.71%, while the tech-heavy Nasdaq lost 0.02%.
Heading into today, shares of the solar wafers manufacturer had lost 17.17% over the past month, lagging the Oils-Energy sector's loss of 13.2% and the S&P 500's loss of 9.52% in that time.
Canadian Solar will be looking to display strength as it nears its next earnings release. On that day, Canadian Solar is projected to report earnings of $0.58 per share, which would represent year-over-year growth of 38.1%. Meanwhile, our latest consensus estimate is calling for revenue of $2.04 billion, up 66.11% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.66 per share and revenue of $7.7 billion, which would represent changes of +135.4% and +45.87%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Canadian Solar. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. Canadian Solar is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Canadian Solar is currently trading at a Forward P/E ratio of 13.98. Its industry sports an average Forward P/E of 48.78, so we one might conclude that Canadian Solar is trading at a discount comparatively.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CSIQ in the coming trading sessions, be sure to utilize Zacks.com.
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Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report
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