Canadian Solar Stock Jumps; Earnings Due Thursday

Canadian Solar's (CSIQ) shares jumped by more than 7% on Wednesday ahead of the release of its first-quarter earnings. The results are due Thursday morning. In its last report, it reported an astonishing 553% increase in EPS. The Relative Strength rating for Canadian Solar rose from 68 on Wednesday to 71.

Canadian Solar, based in Ontario, manufactures and sells solar energy system components, including wafers and solar cells. Management said that they expected revenue in 2023 to be between $1.6 and $1.8 billion.

The market's largest winners have a RS Rating of 80 or more when they start their biggest runs. Check if Canadian Solar is able to continue its price growth and reach that benchmark.

Canadian Solar Stock Pops

The company's growth in top line fell from 57% to a mere 29% last quarter, or $1.97 Billion, but the bottom line increased by an incredible 553%. This is up from 167% the previous report to $1.11 per shares.

The stock of Canadian Solar, a candidate for the watch list, rose by 7.2% on Wednesday to 38.72. This rise has pushed the stock's 50-day and its 200-day lines above. The Street is expecting a milder growth in EPS than the last quarter. However, it will still be strong with a 39% increase year-over-year. It is not the best time to buy, but you can wait and see if it breaks out.

Among the Top 5 in Group

Canadian Solar is ranked No. 5 among its peers in the Energy-Solar industry group. Canadian Solar stock is ranked No. 5 amongst its peers in Energy-Solar's industry group. Nextracker (NXT), Shoals Technologies, and Shoals Technologies are also amongst the highest-rated stocks in this group.

Relative price strength is a factor to consider when deciding which stocks to purchase and monitor.

IBD's Relative strength rating tracks price movements with a score ranging from 1 (worst to 99 (best). The rating compares the price movements of stocks over the past 52 weeks to all other stocks in IBD's database.