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Canadian Solar (CSIQ) Gains As Market Dips: What You Should Know

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Canadian Solar (CSIQ - Free Report) closed at $14.46 in the latest trading session, marking a +0.28% move from the prior day. This move outpaced the S&P 500's daily loss of 0.12%. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq gained 0.08%.

Prior to today's trading, shares of the solar wafers manufacturer had lost 16.5% over the past month. This has lagged the Oils-Energy sector's loss of 8.9% and the S&P 500's loss of 6.96% in that time.

Wall Street will be looking for positivity from CSIQ as it approaches its next earnings report date. This is expected to be March 18, 2019. In that report, analysts expect CSIQ to post earnings of $0.59 per share. This would mark a year-over-year decline of 41.58%. Meanwhile, our latest consensus estimate is calling for revenue of $728.65 million, down 34.28% from the prior-year quarter.

CSIQ's full-year Zacks Consensus Estimates are calling for earnings of $2.65 per share and revenue of $3.57 billion. These results would represent year-over-year changes of +56.8% and +5.35%, respectively.

It is also important to note the recent changes to analyst estimates for CSIQ. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 8.03% higher. CSIQ is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note CSIQ's current valuation metrics, including its Forward P/E ratio of 5.45. This valuation marks a discount compared to its industry's average Forward P/E of 12.19.

It is also worth noting that CSIQ currently has a PEG ratio of 0.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Solar industry currently had an average PEG ratio of 0.7 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 36, putting it in the top 14% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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