Is sunrun good to buy now?
10/28/2024 11:43pm
**Sunrun's stock presents a mixed picture**, and whether it's good to buy now depends on your risk tolerance, investment horizon, and financial goals. Here's a detailed analysis:
1. **Recent Performance and Market Sentiment**:
- Sunrun's stock is currently trading at $15.22, which is relatively low compared to its recent past performance.
- The company has a negative P/E ratio of -2.21, which suggests that the company is not profitable as currently reported, and investors are currently unwilling to pay positive money for each dollar of earnings.
- The P/B ratio of 0.63 indicates that the market values the company's assets less than its current liabilities, which could be a red flag for some investors.
- The P/S ratio of 1.64 suggests that the market is currently willing to pay $1.64 for each dollar of sales, which could be considered high by some investors.
2. **Technical Indicators**:
- The stock's 5-Day, 10-Day, and 20-Day moving averages are $15.22, $15.19, and $18.00, respectively. This indicates that the stock is trading below its short-term and medium-term moving averages, which could be seen as a bearish signal.
- However, the 200-Day moving average is $15.19, which the stock is currently trading at, suggests a potential support level.
3. **Fund Flow and Analyst Ratings**:
- The net fund flow for Sunrun is -$6.95 million, which indicates that more money is leaving the stock than entering, potentially signaling a lack of investor confidence.
- The consensus rating is "Neutral" with an average price target of $23.83, which suggests that analysts believe the stock has potential for upside from its current price.
- However, the price target range is quite broad, with some analysts setting targets as low as $12 and as high as $38, which could indicate significant uncertainty around the stock's future performance.
4. **Long-term Trends and Forecasts**:
- The long-term debt for Sunrun is significant, with figures in the range of $295.87 billion to $410.16 billion, which could be a concern for investors regarding the company's financial stability.
- Despite this, the company is reportedly in discussions with data center companies to supply distributed solar generation, which could be a positive catalyst for the stock if these discussions lead to concrete agreements.
5. **Options Activity**:
- There was a significant increase in options trading volume for Sunrun, with 88,445 call options purchased on the company, which could indicate that some investors are anticipating a potential stock price increase.
In conclusion, while Sunrun has potential based on its discussions with data center companies and the potential for supplying solar power to data centers, the negative net fund flow, the lack of profitability, and the significant long-term debt make it a risky investment. The mixed analyst ratings and wide price target range also suggest that the stock's future performance is uncertain. Investors should carefully consider their risk tolerance and investment horizon before deciding whether to buy Sunrun's stock.