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Sunrun (RUN) Stock Sinks As Market Gains: Here's Why

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Sunrun (RUN - Free Report) closed at $18.32 in the latest trading session, marking a -5.76% move from the prior day. This change lagged the S&P 500's daily gain of 0.64%. Meanwhile, the Dow experienced a rise of 1.23%, and the technology-dominated Nasdaq saw an increase of 0.69%.

Shares of the solar energy products distributor have appreciated by 10.58% over the course of the past month, outperforming the Oils-Energy sector's gain of 1.8%, and the S&P 500's gain of 0.55%.

The investment community will be closely monitoring the performance of Sunrun in its forthcoming earnings report. On that day, Sunrun is projected to report earnings of -$0.1 per share, which would represent a year-over-year decline of 107.09%. At the same time, our most recent consensus estimate is projecting a revenue of $670.27 million, reflecting a 29.27% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $1.22 per share and a revenue of $2.46 billion, demonstrating changes of -8.27% and 0%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Sunrun. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Sunrun currently has a Zacks Rank of #3 (Hold).

The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 45, placing it within the top 19% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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