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Canadian Solar (CSIQ) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Canadian Solar (CSIQ - Free Report) closed at $39.32, marking a -1.33% move from the previous day. This change lagged the S&P 500's daily gain of 1.17%. Meanwhile, the Dow gained 2.95%, and the Nasdaq, a tech-heavy index, lost 1.53%.

Heading into today, shares of the solar wafers manufacturer had gained 0.94% over the past month, outpacing the Oils-Energy sector's gain of 0.05% and lagging the S&P 500's gain of 4.58% in that time.

Investors will be hoping for strength from CSIQ as it approaches its next earnings release, which is expected to be November 19, 2020. 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%. Our most recent consensus estimate is calling for quarterly revenue of $860.54 million, up 13.25% from the year-ago period.

CSIQ's full-year Zacks Consensus Estimates are calling for earnings of $2.60 per share and revenue of $3.52 billion. These results would represent year-over-year changes of +18.72% and +10.12%, respectively.

Investors should also note any recent changes to analyst estimates for CSIQ. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. CSIQ is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, CSIQ is currently trading at a Forward P/E ratio of 15.33. This valuation marks a discount compared to its industry's average Forward P/E of 37.87.

Meanwhile, CSIQ's PEG ratio is currently 0.48. 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 1.67 based on yesterday's closing prices.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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