SunPower SPWR shares ended the last trading session 7.8% higher at $25. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 8.2% gain over the past four weeks.
SunPower’s shares have been rallying over the past few days, ever since the company announced its decision to further de-levered its balance sheet with the full retirement of its 2021 convertible bond on June 2. This comes addition to the repayment of its CEDA loan in the second quarter. This strategy will enable SunPower to materially reduce its recourse debt while improving expected return on invested capital, apart from expanding its residential market footprint.
This solar products and services company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of +109.1%. Revenues are expected to be $329.51 million, down 6.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For SunPower, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SPWR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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