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Strength Seen in Sunrun (RUN): Can Its 11.7% Jump Turn into More Strength? logo 3/22/2023

Sunrun (RUN) shares soared 11.7% in the last trading session to close at $19.02. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 32.5% loss over the past four weeks.

The latest uptick in the share performance of Sunrun can be attributed to recent market expectations that projects the Federal Reserve to slow its pace of rate hike increases. Since solar investments require high levels of capital investment, so this rate outlook must have boosted RUN’s share price.

This solar energy products distributor is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of +90.5%. Revenues are expected to be $524.96 million, up 5.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Sunrun, the consensus EPS estimate for the quarter has been revised 2.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on RUN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Sunrun belongs to the Zacks Solar industry. Another stock from the same industry, SunPower (SPWR), closed the last trading session 7.9% higher at $13.69. Over the past month, SPWR has returned -22.1%.

For SunPower, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.02. This represents no change from what the company reported a year ago. SunPower currently has a Zacks Rank of #3 (Hold).

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