Canadian Solar (CSIQ) Increases Yet Falls Behind Market: What Investors Need to Know
Canadian Solar (CSIQ) closed the most recent trading day at $20.97, moving +0.67% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.93%.
Shares of the solar wafers manufacturer have depreciated by 17.34% over the course of the past month, underperforming the Oils-Energy sector's loss of 0.7% and the S&P 500's loss of 2.29%.
The investment community will be paying close attention to the earnings performance of Canadian Solar in its upcoming release. The company is slated to reveal its earnings on November 14, 2023. The company is predicted to post an EPS of $0.91, indicating a 18.75% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.99 billion, up 3.2% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.21 per share and revenue of $8.63 billion, which would represent changes of +80.52% and +15.61%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Canadian Solar. Recent revisions tend to reflect the latest near-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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Canadian Solar is currently a Zacks Rank #3 (Hold).
Digging into valuation, Canadian Solar currently has a Forward P/E ratio of 3.35. This indicates a discount in contrast to its industry's Forward P/E of 18.67.
The Solar industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 173, this industry ranks in the bottom 32% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report
