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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 $18.68 in the latest trading session, marking a +0.67% move from the prior day. This change lagged the S&P 500's 1.42% gain on the day. Elsewhere, the Dow gained 1.42%, while the tech-heavy Nasdaq added 1.4%.

Prior to today's trading, shares of the solar wafers manufacturer had lost 19.54% over the past month. This has lagged the Oils-Energy sector's gain of 2.11% and the S&P 500's gain of 0.38% in that time.

Investors will be hoping for strength from CSIQ as it approaches its next earnings release. In that report, analysts expect CSIQ to post earnings of $0.88 per share. This would mark a year-over-year decline of 8.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $797.86 million, up 3.89% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.25 per share and revenue of $3.64 billion, which would represent changes of -0.91% and -2.9%, respectively, from the prior year.

Investors should also note any 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CSIQ currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note CSIQ's current valuation metrics, including its Forward P/E ratio of 5.71. For comparison, its industry has an average Forward P/E of 22.39, which means CSIQ is trading at a discount to the group.

We can also see that CSIQ currently has a PEG ratio of 0.18. 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 industry currently had an average PEG ratio of 0.94 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.


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