Sunrun (RUN) Stock Sinks As Market Gains: What You Should Know

Sunrun (RUN) ended the recent trading session at $13.23, demonstrating a -2% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.44%. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.54%.

Coming into today, shares of the solar energy products distributor had gained 19.05% in the past month. In that same time, the Oils-Energy sector gained 7.22%, while the S&P 500 lost 3.31%.

The investment community will be closely monitoring the performance of Sunrun in its forthcoming earnings report. The company's upcoming EPS is projected at -$0.05, signifying a 125.00% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $675.26 million, indicating a 33.91% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.49 per share and a revenue of $3.07 billion, indicating changes of -71.35% and +3.75%, respectively, from the former year.

Any recent changes to analyst estimates for Sunrun should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 64.88% higher. As of now, Sunrun holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Sunrun is holding a Forward P/E ratio of 27.55. This valuation marks a premium compared to its industry average Forward P/E of 16.4.

The Solar industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 200, finds itself in the bottom 19% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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