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SunPower (SPWR) Outpaces Stock Market Gains: What You Should Know

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SunPower (SPWR - Free Report) closed at $36.30 in the latest trading session, marking a +1.06% move from the prior day. This change outpaced the S&P 500's 0.1% gain on the day. At the same time, the Dow added 0.9%, and the tech-heavy Nasdaq lost 0.59%.

Heading into today, shares of the solar products and services company had lost 28.1% over the past month, lagging the Oils-Energy sector's gain of 13.35% and the S&P 500's gain of 0.71% in that time.

Investors will be hoping for strength from SPWR as it approaches its next earnings release. The company is expected to report EPS of $0.03, up 130% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $306.84 million, down 32.47% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.43 per share and revenue of $1.5 billion, which would represent changes of +714.29% and +5.37%, respectively, from the prior year.

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

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 32.17% higher. SPWR is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, SPWR is currently trading at a Forward P/E ratio of 83.54. Its industry sports an average Forward P/E of 63.04, so we one might conclude that SPWR is trading at a premium comparatively.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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