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

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Canadian Solar (CSIQ - Free Report) closed the most recent trading day at $43.08, moving -1.28% from the previous trading session. This change lagged the S&P 500's 0.75% gain on the day.

Prior to today's trading, shares of the solar wafers manufacturer had gained 14.12% over the past month. This has outpaced the Oils-Energy sector's gain of 2.47% and the S&P 500's gain of 2.91% 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 -$0.31 per share. This would mark a year-over-year decline of 444.44%. Our most recent consensus estimate is calling for quarterly revenue of $1.43 billion, up 104.93% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.51 per share and revenue of $5.86 billion, which would represent changes of -36.55% and +68.65%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for CSIQ. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CSIQ is currently a Zacks Rank #5 (Strong Sell).

Digging into valuation, CSIQ currently has a Forward P/E ratio of 28.97. This represents a discount compared to its industry's average Forward P/E of 50.39.

Meanwhile, CSIQ's PEG ratio is currently 2.41. 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. The Solar industry currently had an average PEG ratio of 2.42 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 7% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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