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

Zacks Equity Research

SunPower (SPWR) closed at $10.21 in the latest trading session, marking a -0.78% move from the prior day. This change lagged the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 1%.

Prior to today's trading, shares of the solar products and services company had gained 1.28% over the past month. This has outpaced the Oils-Energy sector's loss of 1.58% and lagged the S&P 500's gain of 2.68% in that time.

Wall Street will be looking for positivity from SPWR as it approaches its next earnings report date. This is expected to be July 31, 2019. In that report, analysts expect SPWR to post earnings of -$0.09 per share. This would mark a year-over-year decline of 800%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 -$0.32 per share and revenue of $1.96 billion. These totals would mark changes of +55.56% and +8.15%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for SPWR. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. SPWR is currently sporting a Zacks Rank of #3 (Hold).

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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