Shares of solar panel maker SunPower got initiated with an outperform rating by analysts at Evercore ISI.
Analysts at Evercore indicated that the stock has been overlooked by investors in recent years , and therefore the stock trades at a discount relative to peers.
Analyst Sean Morgan wrote in a note to clients (as reported in CNBC), “…we believe investors are presently overlooking both industry and company specific long-term catalysts that will eventually help close the valuation gap.” Morgan cited six key tailwinds for SunPower including speed of adoption; a long-term trend of decreasing equipment costs; falling costs of solar ownership; an increase in electric vehicles; concerns over the reliability of the energy grid; and improving market sentiment concerning solar loan financing.
Additionally, the company’s strong balance sheet and healthy cash liquidity could lead to SunPower targeting high-margin growth opportunities around solar, storage, EV charging and home energy software, the note said (as reported in CNBC).
The Aroon Indicator for SPWR entered a downward trend on April 22, 2024. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 277 similar instances where the Aroon Indicator formed such a pattern. In of the 277 cases the stock moved lower. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on April 11, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on SPWR as a result. In of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SPWR turned negative on April 11, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SPWR declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +2 3-day Advance, the price is estimated to grow further. Considering data from situations where SPWR advanced for three days, in of 292 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.670) is normal, around the industry mean (79.835). P/E Ratio (9.372) is within average values for comparable stocks, (39.854). SPWR's Projected Growth (PEG Ratio) (7.457) is very high in comparison to the industry average of (1.939). Dividend Yield (0.000) settles around the average of (0.086) among similar stocks. P/S Ratio (0.302) is also within normal values, averaging (169.754).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. SPWR’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SPWR’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of solar electric power products
Industry ElectricalProducts