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

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In the latest trading session, Canadian Solar (CSIQ - Free Report) closed at $46.26, marking a +1.11% move from the previous day. This move outpaced the S&P 500's daily gain of 0.18%.

Prior to today's trading, shares of the solar wafers manufacturer had gained 2.97% over the past month. This has outpaced the Oils-Energy sector's loss of 0.15% and lagged the S&P 500's gain of 6.99% in that time.

Wall Street will be looking for positivity from CSIQ as it approaches its next earnings report date. The company is expected to report EPS of $0.28, down 80% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.04 billion, up 25.69% from the year-ago period.

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.

It is also important to note the recent changes to analyst estimates for CSIQ. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that CSIQ has a Forward P/E ratio of 18.2 right now. For comparison, its industry has an average Forward P/E of 64.06, which means CSIQ is trading at a discount to the group.

Meanwhile, CSIQ's PEG ratio is currently 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Solar stocks are, on average, holding a PEG ratio of 1.54 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 228, which puts it in the bottom 11% 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.

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


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