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SunPower (SPWR) Gains But Lags Market: What You Should Know

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SunPower (SPWR - Free Report) closed the most recent trading day at $47.33, moving +0.25% from the previous trading session. This change lagged the S&P 500's 0.36% gain on the day. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq added 0.69%.

Prior to today's trading, shares of the solar products and services company had gained 58.05% over the past month. This has outpaced the Oils-Energy sector's gain of 9.81% and the S&P 500's gain of 4.27% in that time.

Wall Street will be looking for positivity from SPWR as it approaches its next earnings report date. In that report, analysts expect SPWR to post earnings of $0.10 per share. This would mark a year-over-year decline of 56.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $355.63 million, down 41.41% from the year-ago period.

Investors might also notice recent changes to analyst estimates for SPWR. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. SPWR is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that SPWR has a Forward P/E ratio of 112.02 right now. This valuation marks a premium compared to its industry's average Forward P/E of 70.07.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% 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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