Canadian Solar (CSIQ) closed the last day of trading at $30.58, down -1.86% from the previous trading session. That change lagged the S&P 500’s daily 0.67% loss. Meanwhile, the Dow Jones lost 0.33% and the tech-heavy Nasdaq lost 0.22%.
As of today, shares of the solar wafer maker were down 18.26% in the past month. Meanwhile, the Oil & Energy sector gained 1.59%, while the S&P 500 lost 3.76%.
Investors are hoping for strength from Canadian Solar as it nears its next earnings release. In that report, analysts expect Canadian Solar to post earnings of $0.58 per share. This would mark year-over-year growth of 38.1%. Meanwhile, our latest consensus estimate calls for revenue of $2.04 billion, up 66.11% from the prior year quarter.
For the full year, our Zacks consensus estimates call for earnings of $2.66 per share and revenue of $7.7 billion, which would represent changes of +135.4% and +45, 87%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Canadian Solar. Recent revisions tend to reflect the latest short-term trading trends. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated to short-term stock prices. Investors can take advantage of this by using the Zacks ranking. This model accounts for these estimation changes and provides a simple and actionable scoring system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outperformance verified by external audits, with #1 stocks generating an average annual return of +25% since 1988 Over the past month, the Zacks Consensus EPS estimate has remained flat. Canadian Solar currently holds a Zacks rating of #2 (buy).
In terms of valuation, Canadian Solar is currently trading at a Forward P/E ratio of 11.7. This valuation marks a discount compared to the average Forward P/E of its sector of 43.71.
The Solar sector is part of the Oil-Energy sector. This group has a Zacks industry ranking of 32, which places it in the top 13% of over 250 industries.
The Zacks Industry Ranking assesses the strength of our individual industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and more, at Zacks.com.
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Canadian Solar Inc. (CSIQ): Free Inventory Analysis Report
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