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Sunnova Energy International (NOVA) Surges 19.3%: Is This an Indication of Further Gains?

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Sunnova Energy (NOVA - Free Report) shares rallied 19.3% in the last trading session to close at $5.68. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 59.3% loss over the past four weeks.

Goldman Sachs has recently maintained it Buy rating for Sunnova, praising its cash generation capability. This must have led to NOVA’s latest share price hike.

This residential solar company is expected to post quarterly loss of $0.70 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $193.14 million, up 19.5% 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 International, the consensus EPS estimate for the quarter has been revised 73.1% 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 International is a member of the Zacks Solar industry. One other stock in the same industry, Array Technologies, Inc. (ARRY - Free Report) , finished the last trading session 5.3% higher at $14.03. ARRY has returned -3.3% over the past month.

Array Technologies' consensus EPS estimate for the upcoming report has changed -101.1% over the past month to $0.01. Compared to the company's year-ago EPS, this represents a change of -96%. Array Technologies currently boasts a Zacks Rank of #3 (Hold).


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