Shares of Canadian Solar jumped more than 7% Wednesday, ahead of its first quarter earnings, due out Thursday morning. On its last report it put up an astounding 553% EPS increase. Meanwhile, the Relative Strength Rating for Canadian Solar stock climbed from 68 to 71 on Wednesday.
Ontario-based Canadian Solar makes and sells a variety of solar energy systems components including wafers, solar cells, solar modules and others. At the end of February, management said they expect 2023 revenue of $1.6 billion to $1.8 billion.
History shows that the market's biggest winners tend to have an RS Rating above 80 as they begin their largest runs. See if Canadian Solar can continue to show renewed price strength and hit that benchmark.
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Canadian Solar Stock Pops
While the company's top line growth fell last quarter from 57% to 29%, or $1.97 billion, the bottom line grew an amazing 553%, up from 167% in the previous report, to $1.11 per share.
Stock watchlist candidate Canadian Solar stock rose 7.2% to 38.72 Wednesday. The rise pushed its stock above both its 50-day and 200-day lines. The Street expects milder EPS growth than last quarter, though still strong at 39% year over year. While now is not an ideal time to jump in, see if the stock goes on to form a base and break out.
Among The Top 5 In Group
Canadian Solar stock earns the No. 5 rank among its peers in the Energy-Solar industry group. Nextracker and Shoals Technologies are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique Relative Strength Rating tracks price movement with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the last 52 weeks holds up against all the other stocks in our database.
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