Canadian Solar (CSIQ - Free Report) closed at $18.99 in the latest trading session, marking a -0.52% move from the prior day. This change lagged the S&P 500's daily of 0%. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq gained 0.25%.
Coming into today, shares of the solar wafers manufacturer had lost 21.86% in the past month. In that same time, the Oils-Energy sector gained 1.74%, while the S&P 500 gained 2.36%.
Investors will be hoping for strength from CSIQ as it approaches its next earnings release. On that day, CSIQ is projected to report earnings of -$0.37 per share, which would represent a year-over-year decline of 151.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $470.45 million, down 66.98% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.41 per share and revenue of $3.64 billion. These totals would mark changes of -26.52% and -2.73%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CSIQ. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 1.77% lower. CSIQ is currently a Zacks Rank #3 (Hold).
Investors should also note CSIQ's current valuation metrics, including its Forward P/E ratio of 7.92. For comparison, its industry has an average Forward P/E of 13.1, which means CSIQ is trading at a discount to the group.
It is also worth noting that CSIQ currently has a PEG ratio of 0.25. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Solar was holding an average PEG ratio of 0.62 at yesterday's closing price.
The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CSIQ in the coming trading sessions, be sure to utilize Zacks.com.