Estimates for ReneSola Ltd. (SOL - Free Report) have been revised upward in the past 30 days, reflecting analysts’ optimism in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings have moved up 550% and 141.7% to 26 cents and 29 cents, respectively.
China-based ReneSola, is a manufacturer and seller of solar wafers as well as related products. The company’s shares have returned 7.1% in the past month compared with the industry’s gain of 6.7%. The company reported earnings of a penny per American Depositary Share (ADS) in the first quarter of 2018, in line with the Zacks Consensus Estimate.
Let’s focus on the factors that make ReneSola an attractive pick.
VGM Score: The stock carries an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Backtested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank offer the best investment bets.
International Projects: ReneSola is currently expanding its business in the markets of Canada, India, Poland, Hungary, France, Spain, Turkey and South Korea. As of Mar 31, 2018, the company had projects worth 110 megawatt (MW) in Turkey. It has late-stage projects of 162 MW in Spain and 73.7 MW of projects in France. The company has 22 MW in India and 17.3 MW in Canada. Overall, the company’s projects in the shovel-ready stage totals 747.9 MW across the globe.
Recently, ReneSola completed a 6.75 MW solar project in North Carolina and sold it to Greenbacker Renewable Energy Company of New York.
Opportunities in Domestic Market: China rooftop solar market is expected to be a significant space for ReneSola’s expansion and it has consistently established its presence in this market. As of Mar 31, 2018, ReneSola owned more than 193.6 MW of rooftop projects in operation in China. Moreover, the company currently has more than 27 MW of rooftop projects under construction and projects to own 350-400 MW of rooftop projects by the end of 2018. Such projections, if fulfilled should improve the company’s revenue growth .
Project Plan: ReneSola remains focused on monetizing its project portfolio while looking for opportunities to expand pipeline across key markets. It expects to generate cash flow of about $100 million from the monetization of some of the projects in the upcoming years. The company projects to monetize 6.8 MW projects in international markets in the second quarter of 2018, and 80-100 MW projects in the rest of 2018.
Zacks Rank & Other Key Picks
ReneSola carries a Zacks Rank #2 (Buy).
Investors can consider other top-ranked stocks from the same space such as Devon Energy (DVN - Free Report) , Murphy Oil Corporation (MUR - Free Report) and Cheniere Energy, Inc (LNG - Free Report) . Murphy Oil and Cheniere Energy sport a Zacks Rank #1 (Strong Buy). Devon Energy carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Devon Energy delivered a positive earnings surprise of 5.26% in the last earnings report. Its 2018 estimates have surged 36.6% to $1.83 in the last 60 days.
Murphy Oil delivered a positive earnings surprise of 4.55% in the last earnings report. Its 2018 estimates have increased 21.9% to $1.67 in the last 60 days.
Cheniere Energy delivered a positive earnings surprise of 90.32% in the last earnings report. Its 2018 estimates have moved up 7.8% to $1.93in the last 60 days.
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