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SunPower (SPWR) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, SunPower (SPWR - Free Report) closed at $6.67, marking a -1.62% move from the previous day. This move lagged the S&P 500's daily gain of 1.15%. Elsewhere, the Dow gained 2.39%, while the tech-heavy Nasdaq lost 0.45%.

Coming into today, shares of the solar products and services company had lost 28.71% in the past month. In that same time, the Oils-Energy sector lost 41.5%, while the S&P 500 lost 24.07%.

Wall Street will be looking for positivity from SPWR as it approaches its next earnings report date. In that report, analysts expect SPWR to post earnings of -$0.22 per share. This would mark year-over-year growth of 46.34%. Our most recent consensus estimate is calling for quarterly revenue of $453 million, up 10.07% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.02 per share and revenue of $2.25 billion. These totals would mark changes of +106.9% and +13.02%, respectively, from last year.

Any recent changes to analyst estimates for SPWR should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 13.33% lower. SPWR is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, SPWR is currently trading at a Forward P/E ratio of 387.43. Its industry sports an average Forward P/E of 14.01, so we one might conclude that SPWR is trading at a premium comparatively.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% 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.

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