Canadian Solar (CSIQ - Free Report) closed the most recent trading day at $39.70, moving +1.17% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.66%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.8%.
Coming into today, shares of the solar wafers manufacturer had gained 25.49% in the past month. In that same time, the Oils-Energy sector lost 4.29%, while the S&P 500 gained 5.22%.
Wall Street will be looking for positivity from CSIQ as it approaches its next earnings report date. In that report, analysts expect CSIQ to post earnings of -$0.04 per share. This would mark a year-over-year decline of 106.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $860.54 million, up 13.25% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.60 per share and revenue of $3.52 billion. These totals would mark changes of +18.72% and +10.12%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CSIQ. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CSIQ is currently a Zacks Rank #3 (Hold).
Investors should also note CSIQ's current valuation metrics, including its Forward P/E ratio of 15.09. Its industry sports an average Forward P/E of 43.68, so we one might conclude that CSIQ is trading at a discount comparatively.
Meanwhile, CSIQ's PEG ratio is currently 0.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Solar stocks are, on average, holding a PEG ratio of 2.37 based on yesterday's closing prices.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.