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Canadian Solar (CSIQ) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
Caterpillar (CAT) closed the most recent trading day at $139.09, moving -0.39% from the previous trading session.

Canadian Solar (CSIQ) closed at $20.40 in the latest trading session, marking a -1.11% move from the prior day. This change lagged the S&P 500's 0.21% loss on the day. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq lost 0.16%.

Coming into today, shares of the solar wafers manufacturer had gained 7.78% in the past month. In that same time, the Oils-Energy sector lost 3.04%, while the S&P 500 gained 2.07%.

Investors will be hoping for strength from CSIQ as it approaches its next earnings release. The company is expected to report EPS of -$0.44, down 161.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $470.77 million, down 66.96% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.40 per share and revenue of $3.58 billion, which would represent changes of -26.83% and -4.43%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for CSIQ. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.41% lower. CSIQ currently has a Zacks Rank of #3 (Hold).

In terms of valuation, CSIQ is currently trading at a Forward P/E ratio of 8.6. Its industry sports an average Forward P/E of 19.25, so we one might conclude that CSIQ is trading at a discount comparatively.

We can also see that CSIQ currently 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 0.81 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.


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