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Canadian Solar (CSIQ) Dips More Than Broader Markets: What You Should Know

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Canadian Solar (CSIQ - Free Report) closed the most recent trading day at $31.72, moving -1.21% from the previous trading session. This change lagged the S&P 500's 0.76% loss on the day. Elsewhere, the Dow lost 0.52%, while the tech-heavy Nasdaq lost 1.15%.

Heading into today, shares of the solar wafers manufacturer had lost 14.19% over the past month, lagging the Oils-Energy sector's gain of 4.81% and the S&P 500's loss of 1.4% in that time.

Investors will be hoping for strength from Canadian Solar as it approaches its next earnings release, which is expected to be August 22, 2023. In that report, analysts expect Canadian Solar to post earnings of $1.52 per share. This would mark year-over-year growth of 42.06%. Meanwhile, our latest consensus estimate is calling for revenue of $2.5 billion, up 8.12% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.76 per share and revenue of $9.29 billion, which would represent changes of +67.44% and +24.43%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Canadian Solar. Recent revisions tend to reflect the latest 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.

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 has moved 0.09% higher. Canadian Solar is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that Canadian Solar has a Forward P/E ratio of 5.57 right now. This represents a discount compared to its industry's average Forward P/E of 26.55.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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