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ReneSola (SOL) Stock Jumps 7%: Will It Continue to Soar?

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Shars of ReneSola Ltd (SOL - Free Report) have gained 7.2% to close Thursday’s trading session at $5.51. The jump came on an impressive volume, with a higher-than-average number of shares changing hands in the session. This compares to the stock's 17.8% loss over the past six months.

The stock has lost 7.6% year to date versus the Zacks Solar industry’s 19.8% loss. Cryptocurrency Solana has lost more than 45% over this period.

Russia’s invasion of Ukraine led to a massive surge in oil and gas prices worldwide, thereby resulting in quite an upheaval in the global stock market. Surprisingly, solar stocks like SOL gained amid this crisis. Higher gas prices shifted focus toward renewables.

Notably, ReneSola has completed 850 megawatts (MW) of projects and had 173 MW of projects in operation as of Sep 30, 2021. Its late-stage state pipeline was 1.8 gigawatt (GW) at the end of third-quarter 2021.

Looking ahead, this solar project developer is expected to post earnings of $0.06 per share in the fourth quarter of 2021. Its revenues are expected to be $25.2 million, reflecting an improvement of 49.9% from the prior-year quarter.

While earnings and revenue growth expectations are essential in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For ReneSola, the consensus EPS estimate for its upcoming quarter has been revised higher by $0.01 over the last 60 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SOL going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>