Why Canadian Solar (CSIQ) Dipped More Than Broader Market Today
Canadian Solar (CSIQ) ended the recent trading session at $22.97, demonstrating a -1.5% swing from the preceding day's closing price. This change lagged the S&P 500's 0.07% loss on the day. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.36%.
Shares of the solar wafers manufacturer have depreciated by 11.77% over the course of the past month, underperforming the Oils-Energy sector's loss of 2.53% and the S&P 500's gain of 3.05%.
Analysts and investors alike will be keeping a close eye on the performance of Canadian Solar in its upcoming earnings disclosure. The company is forecasted to report an EPS of -$0.13, showcasing a 111.71% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.65 billion, showing a 16.33% drop compared to the year-ago quarter.
Investors should also take note of any recent adjustments to analyst estimates for Canadian Solar. 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 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Canadian Solar is currently sporting a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Canadian Solar is currently exchanging hands at a Forward P/E ratio of 8.78. This indicates a discount in contrast to its industry's Forward P/E of 11.3.
The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 221, placing it within the bottom 13% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report
