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Canadian Solar (CSIQ - Free Report) is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower despite the fact that the company beat the number back in May. The company is a provider of solar photovoltaic modules that provide solar power and battery storage solutions. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Ontario, Canada-based Canadian Solar Inc. is a leading manufacturer of solar photovoltaic modules and a provider of solar energy and battery energy storage solutions. The company also develops utility-scale solar power and battery-energy storage projects with a geographically diversified pipeline in various stages of development. The company was incorporated in Canada in 2001.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of Canadian Solar, I see three beats of the Zacks Consensus Estimate and one miss. The most recent quarter was a beat with the company posting $0.19 when the consensus was calling for a loss of $0.34. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For CSIQ I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $2.22 to $2.07 over the last 60 days.
The next year has moved from $3.24 to $2.77 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
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Bear OF The Day: Canadian Solar (CSIQ)
Canadian Solar (CSIQ - Free Report) is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower despite the fact that the company beat the number back in May. The company is a provider of solar photovoltaic modules that provide solar power and battery storage solutions. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Ontario, Canada-based Canadian Solar Inc. is a leading manufacturer of solar photovoltaic modules and a provider of solar energy and battery energy storage solutions. The company also develops utility-scale solar power and battery-energy storage projects with a geographically diversified pipeline in various stages of development. The company was incorporated in Canada in 2001.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of Canadian Solar, I see three beats of the Zacks Consensus Estimate and one miss. The most recent quarter was a beat with the company posting $0.19 when the consensus was calling for a loss of $0.34. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For CSIQ I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $2.22 to $2.07 over the last 60 days.
The next year has moved from $3.24 to $2.77 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).