Canadian Solar wins 86 MWp Japan solar energy auction: time to invest?

Canadian Solar Inc. (NASDAQ:CSIQ) shares popped more than 5% on Tuesday pre-market before pulling back during trading hours. The company won a major Japanese solar energy auction that will boost future growth. CSIQ stock is now up more than 14% since Friday as it continues to enjoy strong bullish momentum.

What’s in the big auction win?

Canadian Solar’s Japanese solar energy auction win includes three projects totaling 86 Mega Watt peak (MWp). The projects will go into a 20-year purchase partnership with Tohoku Power Electric Co. at a weighted average rate of Â¥10.77 ($0.098) per kWh. The projects will go commercial between 2024 and 2026. 

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Canadian Solar entered the Japanese solar energy market in 2011. It has since launched 45 projects and is looking to launch 30 more within the next 3-5 years. CSIQ’s investment in the Asian market is one of the most exciting catalysts for future growth.

The stock trades at a trailing P/E ratio of 47.95. Canadian Solar’s expected earnings growth of more than 143% over the next year prices the shares at an exciting forward P/E ratio of 13.28. The CSIQ stock looks like an attractive buy at the current price considering its exciting growth.

Technical overview: the rebound has solid momentum

Candian Solar’s stock price rebound appears to have strong momentum following its recent solar energy auction win in Japan. CSIQ shares are close to entering overbought conditions in the 14-day RSI. The stock price has already broken above the 100-day moving average in the daily chart.

Investors looking to ride the current bull run can target profits at approximately $50.96 in the short term. Those targeting extended rallies can target long-term profits at $55.26. The key support levels are $41.79 and $37.20.

Bottom line: Canadian Solar’s current rebound seems poised to continue

In summary, Canadian Solar’s current rebound looks solid to continue for the foreseeable future. Although the stock price is approaching overbought conditions, recent announcements could push it higher before a pullback occurs.

Therefore, it is not too late to buy the rebound ahead of CSIQ’s exciting earnings growth next year.

Where to buy right now

To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:

1. Etoro, trusted by over 13m users worldwide. Register here >
2. Plus500, simple, easy to use and regulated. Register here >