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Sunnova Energy (NOVA) Soars 15.8%: Is Further Upside Left in the Stock?

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Sunnova Energy (NOVA - Free Report) shares ended the last trading session 15.8% higher at $24.29. 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 20.6% gain over the past four weeks.

The recent uptick in Sunnova’s share performance can be attributed to the latest spike observed in prices of oil and gas due to Russia-Ukraine crisis. Notably, with rising oil prices, cost of alternative energy production becomes more competitive, thereby turning the spotlight towards clean energy stocks. Moreover, U.S. President Biden announced the United States’ plan to ban oil import from Russia, on March 8, which must have also turned the attention towards solar stocks like NOVA.

This residential solar company is expected to post quarterly loss of $0.37 per share in its upcoming report, which represents a year-over-year change of -19.4%. Revenues are expected to be $64.2 million, up 55.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Sunnova Energy, the consensus EPS estimate for the quarter has been revised 1.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on NOVA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Sunnova Energy is part of the Zacks Solar industry. Maxeon Solar Technologies, Ltd. (MAXN - Free Report) , another stock in the same industry, closed the last trading session 23.6% higher at $13.62. MAXN has returned 28.3% in the past month.

For Maxeon Solar Technologies, Ltd., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.30. This represents a change of -1281.8% from what the company reported a year ago. Maxeon Solar Technologies, Ltd. currently has a Zacks Rank of #4 (Sell).


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