We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Canadian Solar (CSIQ - Free Report) is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower despite the fact that the company beat the number back in May. The company is a provider of solar photovoltaic modules that provide solar power and battery storage solutions. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Ontario, Canada-based Canadian Solar Inc. is a leading manufacturer of solar photovoltaic modules and a provider of solar energy and battery energy storage solutions. The company also develops utility-scale solar power and battery-energy storage projects with a geographically diversified pipeline in various stages of development. The company was incorporated in Canada in 2001.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of Canadian Solar, I see three beats of the Zacks Consensus Estimate and one miss. The most recent quarter was a beat with the company posting $0.19 when the consensus was calling for a loss of $0.34. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For CSIQ I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $2.22 to $2.07 over the last 60 days.
The next year has moved from $3.24 to $2.77 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Bear OF The Day: Canadian Solar (CSIQ)
Canadian Solar (CSIQ - Free Report) is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower despite the fact that the company beat the number back in May. The company is a provider of solar photovoltaic modules that provide solar power and battery storage solutions. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Ontario, Canada-based Canadian Solar Inc. is a leading manufacturer of solar photovoltaic modules and a provider of solar energy and battery energy storage solutions. The company also develops utility-scale solar power and battery-energy storage projects with a geographically diversified pipeline in various stages of development. The company was incorporated in Canada in 2001.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of Canadian Solar, I see three beats of the Zacks Consensus Estimate and one miss. The most recent quarter was a beat with the company posting $0.19 when the consensus was calling for a loss of $0.34. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For CSIQ I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $2.22 to $2.07 over the last 60 days.
The next year has moved from $3.24 to $2.77 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).