In the latest trading session, ReneSola (SOL) closed at $23.33, marking a -1.02% move from the previous day. This change lagged the S&P 500’s daily gain of 0.47%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.5%.
Prior to today’s trading, shares of the solar energy company had lost 6.69% over the past month. This has lagged the Oils-Energy sector’s gain of 0.53% and the S&P 500’s gain of 3.18% in that time.
SOL will be looking to display strength as it nears its next earnings release. In that report, analysts expect SOL to post earnings of -$0.01 per share. This would mark a year-over-year decline of 111.11%. Our most recent consensus estimate is calling for quarterly revenue of $24.56 million, down 7.44% from the year-ago period.
Investors might also notice recent changes to analyst estimates for SOL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. SOL is currently a Zacks Rank #2 (Buy).
In terms of valuation, SOL is currently trading at a Forward P/E ratio of 76.03. Its industry sports an average Forward P/E of 72.18, so we one might conclude that SOL is trading at a premium comparatively.
The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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