Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Canadian Solar (CSIQ - Free Report) closed at $21.33, marking no change from the previous day. This move lagged the S&P 500's daily gain of 1.29%. Elsewhere, the Dow gained 1.49%, while the tech-heavy Nasdaq added 1.46%.

Coming into today, shares of the solar wafers manufacturer had gained 20.51% in the past month. In that same time, the Oils-Energy sector gained 1.59%, while the S&P 500 gained 4.57%.

Wall Street will be looking for positivity from CSIQ as it approaches its next earnings report date. In that report, analysts expect CSIQ to post earnings of $0.70 per share. This would mark a year-over-year decline of 30.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $874.12 million, down 21.16% from the year-ago period.

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. As a result, we can interpret positive estimate revisions as a good sign for 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 2.08% higher. CSIQ is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that CSIQ has a Forward P/E ratio of 8.69 right now. For comparison, its industry has an average Forward P/E of 16.75, which means CSIQ is trading at a discount to the group.

Also, we should mention that CSIQ has a PEG ratio of 0.27. 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 0.74 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Canadian Solar Inc. (CSIQ) - free report >>

Published in