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SunPower (SPWR) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, SunPower (SPWR) closed at $10.36, marking a -1.05% move from the previous day. This move lagged the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq lost 0.24%.

Prior to today's trading, shares of the solar products and services company had gained 35.45% over the past month. This has outpaced the Oils-Energy sector's gain of 0.64% and the S&P 500's gain of 4.13% in that time.

Investors will be hoping for strength from SPWR as it approaches its next earnings release. The company is expected to report EPS of -$0.04, down 300% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $445.90 million, down 0.28% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.37 per share and revenue of $1.95 billion. These totals would mark changes of +48.61% and +7.2%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for SPWR. These recent revisions tend to reflect the evolving nature of short-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. 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.

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. SPWR is currently a Zacks Rank #3 (Hold).

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow SPWR in the coming trading sessions, be sure to utilize Zacks.com.


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