Investors are always on the lookout for stocks poised to beat earnings season Canadian Solar Inc. CSIQ could be such a company. The company’s earnings numbers are coming up soon and events are shaping up quite well for the report.
That’s because Canadian Solar has recently seen a positive revision to earnings estimates, which is generally a harbinger of earnings growth. Finally, analysts’ raising of estimates just ahead of earnings numbers — with the most recent information possible — is a pretty good indicator of some positive trends beneath the surface for CSIQ in this report.
In fact, the most accurate estimate for the current quarter is currently 72 cents per share for CSIQ, compared to a broader Zacks consensus estimate of 48 cents per share. This suggests that analysts recently raised their estimates for CSIQ, giving the stock a Zacks Earnings ESP of +51.58% as earnings season kicks off.
Why is that important?
A positive reading for the Zacks Earnings ESP has proven very effective, both surprising on the upside and outperforming the market. Our latest 10-year backtest shows that stocks with a positive Earnings ESP and a Zacks Rank of #3 (Hold) or better show upside surprise nearly 70% of the time and have average annual returns of over 28% have.
Given that CSIQ has a #3 Zacks rank and ESP in positive territory, investors might want to consider this stock ahead of earnings.
Recent revisions to earnings estimates clearly indicate that Canadian Solar has a bright future ahead and that better earnings could be on the horizon for the upcoming report.
picture of Zbynek burial At Unsplash
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