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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 $40.81, moving -1.19% from the previous trading session. This move lagged the S&P 500's daily gain of 1.13%.

Prior to today's trading, shares of the solar wafers manufacturer had gained 3.51% over the past month. This has outpaced the Oils-Energy sector's loss of 5.86% and the S&P 500's gain of 2.39% 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 might also notice recent changes to analyst estimates for CSIQ. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. CSIQ is currently a Zacks Rank #5 (Strong Sell).

Digging into valuation, CSIQ currently has a Forward P/E ratio of 27.41. Its industry sports an average Forward P/E of 55.33, so we one might conclude that CSIQ is trading at a discount comparatively.

We can also see that CSIQ currently has a PEG ratio of 2.28. 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. CSIQ's industry had an average PEG ratio of 2.3 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 239, putting it in the bottom 6% 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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