Solar Stocks To Watch For Q3 Earnings On Nov 12: CSIQ & RUN

The Zacks Solar industry has reported mixed third-quarter results so far. Stocks like SunPower Corporation (NASDAQ:SPWR) and Enphase Energy (NASDAQ:ENPH) delivered positive earnings surprise this time around, while Vivint Solar, Inc. (NYSE:VSLR) and Sunnova Energy International Inc. (NYSE:NOVA) , among others, missed estimates by a wide margin.

Key Factors to Note

Rising installation of solar modules in different U.S. states, especially in Florida and Texas, has been boosting growth expectations for the U.S. solar industry.

Increase in domestic usage, and rising shipment of solar modules and panels are likely to have had a positive impact on the performance of solar stocks. Plummeting prices of solar modules and panels, along with solar investment tax credit have been boosting growth in the solar space. However, strong competition from natural gas and other clean sources of energy might weigh on results.

Q3 Predictions

The Solar industry belongs to the Oil & Energy sector, whose total third-quarter earnings and revenues are expected to decline 34.8% and 5.2% year over year, respectively.

Notably, Oil & Energy is one of the seven Zacks sectors (out of 16) that are likely to come up with negative year-over-year earnings growth in the current reporting cycle. For more details on quarterly releases, you can go through the latest Earnings Preview.

Solar Stocks to Watch

Let’s take a look at two solar stocks that are scheduled to report third-quarter 2019 results on Nov 12.

Canadian Solar Inc. (NASDAQ:CSIQ) is slated to report quarterly results on Nov 12, before market open. The company beat earnings estimates in the last four quarters, with the average surprise being 115.66%.

According to the Zacks model, a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. But that’s not the case here, as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Canadian Solar has a Zacks Rank #3 and an Earnings ESP of 0.00% (read more: What's in Store for Canadian Solar in Q3 Earnings?).

Sunrun Inc. (NASDAQ:RUN) is set to release quarterly results on Nov 12, after market close. In the last four reported quarters, the company delivered average negative earnings surprise of 115.03%

Sunrun has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of +188.75% (read more: Sunrun to Report Q3 Earnings: What's in the Cards?).

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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