In the latest trading session, Canadian Solar (CSIQ - Free Report) closed at $18.45, marking a -1.91% move from the previous day. This change lagged the S&P 500's daily of 0%. Elsewhere, the Dow lost 0.05%, while the tech-heavy Nasdaq lost 0.21%.
Prior to today's trading, shares of the solar wafers manufacturer had lost 20.5% over the past month. This has lagged the Oils-Energy sector's gain of 5.11% and the S&P 500's gain of 5.49% in that time.
CSIQ will be looking to display strength as it nears its next earnings release. In that report, analysts expect CSIQ to post earnings of -$0.37 per share. This would mark 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.
CSIQ's full-year Zacks Consensus Estimates are calling for earnings of $2.41 per share and revenue of $3.64 billion. These results would represent year-over-year changes of -26.52% and -2.73%, respectively.
It is also important to note the recent changes to analyst estimates for CSIQ. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, CSIQ is holding a Forward P/E ratio of 7.8. Its industry sports an average Forward P/E of 17.71, so we one might conclude that CSIQ is trading at a discount comparatively.
We can also see that CSIQ currently has a PEG ratio of 0.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Solar stocks are, on average, holding a PEG ratio of 0.65 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 163, which puts it in the bottom 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.