Benzinga - by Zacks, Benzinga Contributor.
Canadian Solar (NASDAQ: CSIQ) ended the recent trading session at $16.21, demonstrating a -1.4% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 1.57%. Meanwhile, the Dow lost 1.49%, and the Nasdaq, a tech-heavy index, lost 2.04%.
The the stock of solar wafers manufacturer has fallen by 16.59% in the past month, lagging the Oils-Energy sector's gain of 2.99% and the S&P 500's loss of 2.5%.
The upcoming earnings release of Canadian Solar will be of great interest to investors. The company's earnings report is expected on May 9, 2024. It is anticipated that the company will report an EPS of -$0.26, marking a 121.85% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.28 billion, indicating a 25.03% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.58 per share and a revenue of $8.85 billion, representing changes of -33.33% and +16.3%, respectively, from the prior year.
Any recent changes to analyst estimates for Canadian Solar should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.49% rise in the Zacks Consensus EPS estimate. Right now, Canadian Solar possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Canadian Solar is at present trading with a Forward P/E ratio of 6.38. This denotes a discount relative to the industry's average Forward P/E of 12.5.
It's also important to note that CSIQ currently trades at a PEG ratio of 0.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Solar industry had an average PEG ratio of 0.31 as trading concluded yesterday.
The Solar industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 164, finds itself in the bottom 35% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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