Stretch the Investment Budget for Canadian Solar?

Canadian Solar Although outside of traditional ‘bargain’ territory at $18.43, Canadian Solar Inc. (NASDAQ: CSIQ) is still a stock that alternative investors should consider. The stock’s recovery, an expected upside, and the efficiency of the company behind it make it one of the most promising solar stocks right now.

Canadian Solar is a developer of solar panels and related products and services. It is a major global solar company and has recently finalized a deal through its Australian subsidiary to provide solar energy to Amazon. The company generated $3.2 billion in revenue in the 2019 fiscal year. Although a -14% decrease over the previous year, the sales decline can be attributed to low prices for oil and traditional energy sources. Long-term, revenue is expected to soar as renewables will generate the majority of the world’s electricity by 2050. For investors focused on the long term, this momentum pick would be a strong portfolio addition.

The stock is currently trading below its average target price of $23.22, suggesting that there will be an upside for investors who buy now. The company is profitable right down to the bottom line, with a gross profit margin of 22.45% and an EBITDA margin of 13.34%. The company’s fiscal efficiency, even when facing declining sales, makes the stock a promising bet for a future dominated by alternative energy.

Key Data:

  • 1 Year Price Growth: -13.35%
  • YTD Price Growth: -16.61%
  • 3 Month Price Growth: 68%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.