Canadian Solar Inc. (CSIQ) Shares Soar 5.74% on Strong Q1 Earnings

Canadian Solar Inc. (CSIQ) shares surged 5.74% today, reflecting strong market sentiment following the company's recent earnings report and strategic developments.

The strategy of buying CSIQ shares after the stock reaches a recent low and holding for 1 week shows poor performance over the past 5 years. The backtested return is -24.97%, underperforming the market with a Sharpe ratio of -0.79 and a beta of 1.13, indicating significant volatility and negative returns. This suggests that this strategy failed to capture the stock's low-point momentum effectively.

Canadian Solar's Q1 2025 earnings report revealed a better-than-expected performance, with an EPS of $-1.07, surpassing the anticipated loss of $-1.50. The company's revenues also exceeded estimates, growing by 9.9% compared to the Zacks Consensus Estimate.

Despite the positive earnings, Canadian Solar reported a net loss of USD 34 million for Q1 2025, leading to a revision of its 2025 outlook. The company's solar module shipments, however, increased by 9.4% year-over-year to 6.9 GW, exceeding the guidance range of 6.4 GW to 6.7 GW.

Analysts have responded positively to Canadian Solar's performance, with Roth Capital's analyst raising the price target from $9 to $11. Wall Street analysts, on average, forecast a target price of $14.78, suggesting a potential upside of 33.76% from the current price.