Canadian Solar Stock Heats Up Amid Remarkable Turnaround This Year By Investors Business Daily
Environmental, social, governance investing. or ESG, has gained in popularity among investors in recent years. A cornerstone of ESG is solar energy. Among its ranks is Canadian Solar (CSIQ), whose stock Relative Strength (RS) Rating shot into a new percentile Thursday, climbing to 84, up from 79 the prior session.
The rating means that Canadian Solar has outperformed 84% of all stocks on key metrics over the past 52 weeks. Over 100 years of market history reveals that the stocks that go on to make the biggest gains tend to have an RS Rating north of 80 as they begin their biggest runs.
Canadian Solar’s turnaround this year has been dramatic.
Fast Turnaround
The solar energy company saw both earnings and sales growth rise last quarter vs. a year earlier.
Earnings-per-share increased from a 29 cent loss to a $1.84 profit, a 734% pop. Revenue growth rose from 2% a year ago to a 70% jump to $826 million.
Canadian Solar earns the No. 5 rank among its peers in the Energy-Solar industry group. Daqo New Energy (DQ) is the No. 1-ranked stock in the group.
Canadian Solar looks to be forming a cup base on a daily chart, and a misshapen V-shape cup base on a weekly. That’s not surprising given the severity of the coronavirus downturn. While the stock is not near an ideal buy point right now, see if it goes on to form and break out of a proper consolidation.
When you’re researching the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD’s unique rating measures price action with a 1 (worst) to 99 (best) score. The rating shows how a stock’s price behavior over the trailing 52 weeks stacks up against all the other stocks in our database.
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