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

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Canadian Solar Inc. (CSIQ - Free Report) has a strong pipeline of projects as well as undertakes various acquisitions and strategies to further consolidate its position.

Earnings estimates for the company have been revised upward in the past 30 days, reflecting analysts’ optimism on the stock. The Zacks Consensus Estimate for 2019 and 2020 earnings has moved up 32.7% and 18.4% to $3.25 and $3.41 during the said period, respectively.

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

Zacks Rank & VGM Score

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

The company has 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. 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.

Earnings Surprise History & Long-Term Growth

The company’s average four-quarter positive earnings surprise is 115.66%.

The company’s long-term (3 to 5 years) earnings growth is pegged at 32%.

Price Movement & Debt/Capital

In the past 12 months, Canadian Solar’ shares have gained 62.5% compared with the industry’s rise of 49.7%.



The company’s current debt-to-capital ratio is at 26.91%, lower than the Zacks S&P 500 composite’s 43.30% and the industry's 27.20%.

Global Existence

The company’s key markets are the United States, China, Japan, the U.K. and Canada as well as emerging markets like Brazil, India, Mexico, Italy, Germany, South Africa and the Middle East. Of late, the company has further expanded its footprint in Argentina, Australia and South Korea, which are considered to witness industrial growth. In the second quarter of 2019, the company shipped nea    rly 2,143 megawatt (MW) of solar modules globally, up 26% from 1,700 MW of solar modules shipped in the second quarter of 2018.

Key Picks

Some other top-ranked stocks from the same sector are Enphase Energy, Inc (ENPH - Free Report) , SolarEdge Technologies, Inc (SEDG - Free Report) and Ameresco, Inc (AMRC - Free Report) . While Enphase Energy and Ameresco carry a Zacks Rank #2 (Buy), SolarEdge Technologies sports a Zacks Rank #1.

Enphase Energy, SolarEdge Technologies and Ameresco reported average positive earnings surprise of 16.28%, 1.23% and 21.75% respectively, in the last four quarters.

The Zacks Consensus Estimate for Enphase Energy, SolarEdge Technologies and Ameresco for 2019 has moved up 51.9%, 30.9% and 2.6%, respectively, in the past 60 days.

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