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

Zacks Equity Research
·3 min read

In the latest trading session, Canadian Solar (CSIQ) closed at $36.73, marking a -0.62% move from the previous day. This move lagged the S&P 500's daily gain of 1.78%. At the same time, the Dow added 2.06%, and the tech-heavy Nasdaq gained 1.85%.

Prior to today's trading, shares of the solar wafers manufacturer had lost 3.37% over the past month. This has lagged the Oils-Energy sector's gain of 0.88% and the S&P 500's loss of 1.1% 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 November 19, 2020. In that report, analysts expect CSIQ to post earnings of -$0.04 per share. This would mark a year-over-year decline of 106.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $860.54 million, up 13.25% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.60 per share and revenue of $3.52 billion. These totals would mark changes of +18.72% and +10.12%, 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CSIQ is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that CSIQ has a Forward P/E ratio of 14.22 right now. This valuation marks a discount compared to its industry's average Forward P/E of 38.74.

We can also see that CSIQ currently has a PEG ratio of 0.44. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CSIQ's industry had an average PEG ratio of 1.87 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 126, putting it in the top 50% 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.


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