Valuing 2 Stocks Using Ratios and Multiples: Spirit AeroSystems Holdings Inc. (SPR), Canadian Solar Inc. (CSIQ)

You should consider shares of Spirit AeroSystems Holdings Inc. (NYSE:SPR) and Canadian Solar Inc. (NASDAQ:CSIQ) if you are looking for a great stocks to invest in. Starting with the SPR shares, which traded at $84.62 at the close of the recent session, dropping -1.35%. On Tuesday, the company’s shares shed -$1.16 from its value which represented in intraday trading. The stock is now 3.35% higher in year-to-date (YTD) trading. SPR’s intraday high was $85.41 while its lowest price touched $84.2152. The stock’s 52-week high price is $100.34, which means the current price is at -15.67%. In terms of trading activity, the daily trading volume rose to 1173621 against 200-day average trading volume of 974,820 shares.

What are analyst forecasts for Spirit AeroSystems Holdings Inc. (NYSE:SPR)?

At a consensus rating of 3.00, SPR is trending as a streaking Hold, as it has been the case a month ago when 11 analysts called it a Hold. Two months ago, 11 analysts recommended, on average, that SPR stock is a Hold. The Industrial Goods company’s shares’ overall bearish trend saw it close higher on Tuesday compared to its opening price of $85.16 on the day.

Forecasts for Spirit AeroSystems Holdings Inc. (NYSE:SPR) give the stock a fair value for the growth of 10.93% from its last price. The 12-month price forecast for the stock by analysts puts the stock’s mean price target at $95.00, which means the price per share could rise by nearly $10.38. The price range target is between a low of $70.00 and a high of $112.00. The stock would need to gain by about $24.45 to hit the estimated high or 0.76% from its 12-month low.

The consensus among 18 analysts is that it is a good time for one to Hold in the Spirit AeroSystems Holdings Inc. 4 analysts rate SPR as a Buy, with 1 of 18 analysts rate it as a Sell. 2 have valued the stock as Overweight and 11 have recommended that investors Hold.

Spirit AeroSystems Holdings Inc. (NYSE:SPR) Upgrades and Downgrades

In terms of rating changes, Susquehanna on November 26, 2019, Initiated Spirit AeroSystems Holdings Inc. (SPR) at Neutral. They believe the stock could reach $96 in the near term. Analysts at Robert W. Baird have assigned a Neutral rating for the stock in their research note on October 22, 2019 with an estimated price target of $80. Moreover, UBS analysts issued a rating of Neutral for the stock on October 21, 2019, giving it a price target of $88 for the next 12 months. On July 15, 2019, the stock earned a Neutral rating due to an analyst call from Credit Suisse, while analysts from Jefferies on July 02, 2019 suggested that the stock is Hold.

Canadian Solar Inc. (NASDAQ:CSIQ) adds $0.33 on Tuesday

The CSIQ stock has risen 16.74% year-to-date and is currently trading at $16.74, which is -35.34% below its 52-week high. The company shares gained 2.01% on the day and have risen nearly 24.37% off a low hit. At current levels, Canadian Solar Inc. has a valuation of about $3.18B. As of 12/03/19, this stock has risen 7.10% during the week and closed at $16.41 in the previous session. However, recent Canadian Solar Inc. stock performance shows that CSIQ shares are -4.21% down over the last month, and -28.06% down for the last three months.

Earnings per share (EPS) estimates for the current quarter are $1.01, with the trailing 12-month share earnings at $3.56. The ratio is expected to be down by -40.70% for the current year 2019 and 26.10% for next year. Over the next 5-year period, earnings per share will be 51.00%. But will the CSIQ stock surprise in the current quarter results, where the $0.96 actual EPS reported on 9/29/2019 surprised by 20.00% or was higher by $0.16 from the estimated $0.8.

Sales Growth to climb 27.40% for the year

How well will Canadian Solar Inc. perform as a business over the current quarter, year and next 5-year period? Compared to the year-ago quarter, analysts forecast the company to bring in between $845.51M and $873.47M in current quarter sales. The consensus estimated for the current quarter is $863.32M from sales. Forecasts for this fiscal year are between $3.13B and $3.15B and the consensus estimate for sales is at $3.14B. CSIQ has its next quarter sales estimates at between $756.27M and $1.06B, with the quarter-over-quarter growth estimates at 87.50% and the annual growth forecast for the year at 27.40%.

Who owns shares in Canadian Solar Inc. (CSIQ)?

Let’s briefly focus on the share ownership of the Canadian Solar Inc. (NASDAQ:CSIQ) stock, where we find that 41.36% of shares are held by institutions. Schroder Investment Management Group tops the list of institutional owners as it is holding 4.26 million shares or 7.16% of shares outstanding. Lion Point Capital, LP and Morgan Stanley held 3.9 million and 2.08 million representing 6.56% and 3.50% respectively at the close of the last trading session. As of Sep 29, 2019, Vanguard Group, Inc. (The) accounted for 1.62 million shares at over 30.64 million. This represented 2.73% of shares outstanding. Connor Clark & Lunn Investment Management Ltd held 1.62 million shares at over 30.58 million representing 2.73% of shares outstanding.