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Canadian Solar (CSIQ) Gains But Lags Market: What You Should Know

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Canadian Solar (CSIQ - Free Report) closed at $18.18 in the latest trading session, marking a +0.06% move from the prior day. The stock lagged the S&P 500's daily gain of 0.76%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 0.71%.

Prior to today's trading, shares of the solar wafers manufacturer had gained 12.86% over the past month. This has outpaced the Oils-Energy sector's gain of 2.31% and the S&P 500's gain of 0.75% in that time.

Investors will be hoping for strength from CSIQ as it approaches its next earnings release, which is expected to be March 18, 2019. In that report, analysts expect CSIQ to post earnings of $0.59 per share. This would mark a year-over-year decline of 41.58%. Our most recent consensus estimate is calling for quarterly revenue of $728.65 million, down 34.28% from the year-ago period.

Investors might also notice recent changes to analyst estimates for CSIQ. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 7.89% higher. CSIQ is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note CSIQ's current valuation metrics, including its Forward P/E ratio of 7.56. This represents a discount compared to its industry's average Forward P/E of 13.72.

Investors should also note that CSIQ has a PEG ratio of 0.24 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Solar stocks are, on average, holding a PEG ratio of 0.72 based on yesterday's closing prices.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 13% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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