Canadian Solar (CSIQ) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3-min read

Canadian Solar (CSIQ) closed the most recent trading day at $43.27, moving -0.23% from the previous trading session. This change lagged the S&P 500's 0.02% loss on the day.

Coming into today, shares of the solar wafers manufacturer had lost 7.63% in the past month. In that same time, the Oils-Energy sector lost 3.65%, while the S&P 500 gained 6.61%.

Investors will be hoping for strength from CSIQ as it approaches its next earnings release. On that day, CSIQ is projected to report earnings of $0.28 per share, which would represent a year-over-year decline of 80%. Meanwhile, our latest consensus estimate is calling for revenue of $1.04 billion, up 25.69% from the prior-year quarter.

CSIQ's full-year Zacks Consensus Estimates are calling for earnings of $2.51 per share and revenue of $5.7 billion. These results would represent year-over-year changes of +5.46% and +63.88%, respectively.

Investors might also notice recent changes to analyst estimates for CSIQ. Recent revisions tend to reflect the latest near-term business trends. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 11.87% higher. CSIQ is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, CSIQ is holding a Forward P/E ratio of 17.26. This represents a discount compared to its industry's average Forward P/E of 72.21.

We can also see that CSIQ currently has a PEG ratio of 1.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Solar stocks are, on average, holding a PEG ratio of 1.56 based on yesterday's closing prices.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 29% 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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