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

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Canadian Solar (CSIQ - Free Report) closed at $42.91 in the latest trading session, marking a +0.75% move from the prior day. This move outpaced the S&P 500's daily loss of 0.68%.

Prior to today's trading, shares of the solar wafers manufacturer had lost 2.91% over the past month. This has lagged the Oils-Energy sector's loss of 2.34% and the S&P 500's gain of 6.62% in that time.

Investors will be hoping for strength from CSIQ as it approaches its next earnings release. In that report, analysts expect CSIQ to post earnings of $0.28 per share. This would mark a year-over-year decline of 80%. Meanwhile, our latest consensus estimate is calling for revenue of $1.04 billion, up 25.69% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.51 per share and revenue of $5.7 billion, which would represent changes of +5.46% and +63.88%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CSIQ. Recent revisions tend to reflect the latest near-term business trends. 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 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. Within the past 30 days, our consensus EPS projection has moved 18.27% lower. CSIQ is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that CSIQ has a Forward P/E ratio of 17.55 right now. For comparison, its industry has an average Forward P/E of 58.59, which means CSIQ is trading at a discount to the group.

We can also see that CSIQ currently has a PEG ratio of 1.46. 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 1.46 based on yesterday's closing prices.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 8% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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