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Here's Why You Should Add Canadian Solar (CSIQ) to Portfolio

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Earnings estimates for Canadian Solar Inc. (CSIQ - Free Report) have been revised upward in the past 90 days, reflecting analysts’ optimism on the stock. The Zacks Consensus Estimate for 2019 and 2020 earnings has moved up 0.4% and 4.6% to $2.41 and $2.71 during the said period, respectively.

Canadian Solar, along with its subsidiaries, designs, develops, manufactures and sells solar ingots, wafers, cells, modules as well as other solar power products.

Let’s focus on the factors that make the stock an appropriate investment option at the moment.

Earnings & Surprise History

The company delivered fourth-quarter 2018 operating earnings of $1.61 per share, which beat the Zacks Consensus Estimate of 87 cents by 85.1%. The company’s average four-quarter positive earnings surprise is 65.51%.

Zacks Rank & VGM Score

Canadian Solar currently carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company has an impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are best investment options.

Price Movement

In the past 12 months, Canadian Solar’ shares have gained 14.2%, against the industry’s decline of 4.3%.

Strong Global Pipeline

The company caters to a geographically-diverse customer base in key markets that include the United States, China, Japan, the U.K. and Canada. Also, it witnesses growth opportunities in emerging markets like Brazil, India, Mexico, South Africa and the Middle East. Of late, the company has further expanded its global late-stage project pipeline into nations like Argentina, Australia and South Korea. In 2018, the company shipped solar modules of around 6.6 gigawatts and monetized around 1.7 megawatts of utility-scale solar projects globally.This reflects on the company’s expanding global footprint.

Other Stocks to Consider

Some other top-ranked stocks from the same industryare Sunworks, Inc. , Enphase Energy, Inc. (ENPH - Free Report) and Sunrun Inc. (RUN - Free Report) . Sunworks sports a Zacks Rank of 1, while Enphase Energy and Sunrun holds a Zacks Rank of 2.

Sunworks pulled off an average positive earnings surprise of 7.50% in the last four quarters. The company’s long-term earnings growth is pegged at 10%

Enphase Energy came up with an average positive earnings surprise of 33.34% in the last four quarters. The Zacks Consensus Estimate for 2019 earnings has been revised 28.6% upward in the past 60 days.

Sunrun’s long-term earnings growth is pegged at 20.80%.The Zacks Consensus Estimate for 2019 earnings has been revised 18% upward in the past 60 days.

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