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SunPower (SPWR) Moves 18.2% Higher: Will This Strength Last?

Zacks Equity Research
·2-min read

SunPower (SPWR) shares rallied 18.2% in the last trading session to close at $19.83. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 10.8% gain over the past four weeks.

In a recent development, majority leaders of U.S. Sensate, Chuck Schumer and Joe Manchin announced that they have reached to an agreement for spending provision of $369 billion in the U.S. clean energy industry. Such an enormous climate spending provision must have boosted the share price of SunPower

This solar products and services company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -16.7%. Revenues are expected to be $363.24 million, up 17.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

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For SunPower, the consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. 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 >>>>

SunPower is a member of the Zacks Solar industry. One other stock in the same industry, Sunworks (SUNW), finished the last trading session 23.3% higher at $2.01. SUNW has returned 2.5% over the past month.

For Sunworks , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.22. This represents a change of -214.3% from what the company reported a year ago. Sunworks currently has a Zacks Rank of #3 (Hold).


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