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SunPower Gains from Higher Residential & Commercial Demand


We recently issued an updated research report on SunPower Corporation SPWR, which designs, develops, manufactures, markets and sells high-performance solar electric power technology products, systems and services worldwide. We expect focus on enhancing product offerings and expanding footprint in global untapped markets to boost results for the company.

What’s Driving SunPower?

SunPower continues to witness growth in residential and commercial markets. In its residential unit, solid demand is observed for its residential Equinox solution, which is expected to drive residential margins. The company anticipates consistent growth in the U.S. residential market.

In its commercial unit, the company is witnessing growth in the public sector and light commercial channels, in particular. Also, the company’s Insolvency and Bankruptcy Code (IBC) panels have been the most favored choice for residential and light commercial customers over the last 15 years. The panel’s efficiency has gone up to 23%, reflecting the highest level of reliability in the solar industry.

Outside core markets, the company continues to focus on the sale of its new Oasis complete solution, which is a modular solar power block used for power plant applications, to developers and EPC (Engineering, Procurement and Construction) companies in global markets. Notably, the Oasis system consists of SunPower’s low cost, high efficiency P-series solar panels, which is expected to further expand the company’s global footprint at minimal capital cost. The company expects global market to expand by nearly 40% over the next five years.

SunPower is now gradually shifting its revenue base from solar panel sales to the development of solar projects, power plants and EPC systems.

In the past four quarters, SunPower came up with average positive surprise of 83.82%. The Estimates for 2018 earnings remained unchanged in the past 30 days. However, rising costs, stiff competition and exposure to currency fluctuations are major deterrents. In the past six months, shares of SunPower have lost 12.3%, compared with the industry’s decline of 12.6

Zacks Rank

SunPower carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Oils-Energy Sector Releases

Northern Oil and Gas, Inc. NOG, with a Zacks Rank #2 (Buy), has average earnings surprise of 138.54% for the past four quarters. The Zacks Consensus Estimate for 2018 earnings moved up 40.5% in last 60 days.

CONSOL Coal Resources LP CCR, with a Zacks Rank #1, reported an average earnings surprise of 2.72% in the past four quarters. The Zacks Consensus Estimate for 2018 earnings moved up 18.5% in last 60 days.

Southwestern Energy Co. SWN has a Zacks Rank #2 and average earnings surprise of 6.48% for the past four quarters. The Zacks Consensus Estimate for 2018 earnings moved up 11.2% in last 60 days.

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