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Solar Stocks to Watch for Earnings on Nov 10: SCTY, RUN, SUNW

RUN SUNW

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The Q3 earnings cycle is in its last leg, with approximately 87.1% of the market cap of the S&P 500 index having released quarterly numbers as of Nov 4. Reported results reveal a 3.6% increase in third-quarter earnings on 2.4% higher revenues.

About 77 S&P 500 members will report results in the upcoming weeks. Overall earnings are anticipated to witness a 3% improvement on 1.5% higher revenues, with four of the 16 Zacks sectors witnessing growth in the negative territory. The picture should become clearer by the end of this week after the majority releases results. For more details, you may go through our Earnings Preview report.

For companies operating in the renewable energy space, environmental considerations have been propelling demand for alternative sources of energy to a large extent. In fact, solar energy got a major boost from the environmental tax credit extensions of Dec 2015.

Further, the U.S. Energy Information Administration (“EIA”) anticipates total renewables used in the electric power sector to increase 9.5% in 2016 and 5.8% in 2017. The EIA also projects utility-scale solar generating capacity to increase from 10 gigawatts (“GW”) at the end of 2014 to 27 GW in 2017, which reflects an average annual growth rate of 39% — the highest for all sources of renewable electricity generation.

Let us take a look at three important solar stocks that are all expected to report third-quarter results on Nov 10.

SolarCity Corporation posted a positive earnings surprise of 4.53% in the preceding quarter.

Our proven model does not conclusively show that SolarCity is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here.

SolarCity has a Zacks Rank #2.You can see the complete list of today’s Zacks #1 Rank stocks here.

SolarCity has an Earnings ESP -8.51%. This is because the Most Accurate estimate is pegged at a loss of $2.55 while the Zacks Consensus Estimate stands at a loss of $2.35. (Read more: SolarCity: What Awaits the Stock in Q3 Earnings? )

SOLARCITY CORP Price and EPS Surprise

 

SOLARCITY CORP Price and EPS Surprise | SOLARCITY CORP Quote

Sunrun Inc. (RUN - Free Report) reported a positive earnings surprise of 175.61% in the prior quarter. It has a Zacks Rank #3.

However, the company has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 43 cents.

SUNRUN INC Price and EPS Surprise

 

SUNRUN INC Price and EPS Surprise | SUNRUN INC Quote

Sunworks, Inc. (SUNW - Free Report) reported a negative earnings surprise of 40% last quarter. It has a Zacks Rank #3.

However, the company has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 12 cents.

SUNWORKS INC Price and EPS Surprise

 

SUNWORKS INC Price and EPS Surprise | SUNWORKS INC Quote

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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