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Canadian Solar (CSIQ) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Canadian Solar (CSIQ - Free Report) closed at $18.26, marking a +0.47% move from the previous day. This change outpaced the S&P 500's 0.28% gain on the day. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.4%.

Prior to today's trading, shares of the solar wafers manufacturer had lost 16.21% over the past month. This has lagged the Oils-Energy sector's loss of 6.03% and the S&P 500's loss of 0.14% in that time.

Wall Street will be looking for positivity from CSIQ as it approaches its next earnings report date. On that day, CSIQ is projected to report earnings of $0.88 per share, which would represent 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 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant. CSIQ is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, CSIQ is holding a Forward P/E ratio of 5.59. This represents a discount compared to its industry's average Forward P/E of 22.3.

Meanwhile, CSIQ's PEG ratio is currently 0.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Solar stocks are, on average, holding a PEG ratio of 0.97 based on yesterday's closing prices.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 43, putting it in the top 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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