Canadian Solar (CSIQ) closed at $22.77 in the latest trading session, marking a -1.04% move from the prior day. This change lagged the S&P 500's daily gain of 1.24%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 1.35%.
Coming into today, shares of the solar wafers manufacturer had gained 19.41% in the past month. In that same time, the Oils-Energy sector gained 3.67%, while the S&P 500 gained 7.09%.
Wall Street will be looking for positivity from CSIQ as it approaches its next earnings report date. This is expected to be August 7, 2020. On that day, CSIQ is projected to report earnings of $0 per share, which would represent a year-over-year decline of 100%. Meanwhile, our latest consensus estimate is calling for revenue of $660.57 million, down 36.26% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.74 per share and revenue of $3.33 billion. These totals would mark changes of +25.11% and +4.08%, respectively, from last year.
Any recent changes to analyst estimates for CSIQ should also be noted by investors. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 2.07% higher. CSIQ currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, CSIQ is holding a Forward P/E ratio of 8.41. This valuation marks a discount compared to its industry's average Forward P/E of 33.88.
It is also worth noting that CSIQ currently has a PEG ratio of 0.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Solar industry currently had an average PEG ratio of 1.1 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% 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.
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