NEW YORK (TheStreet) -- SunPower Corp. (SPWR - Get Report) stock is surging by 8.17% to $23.29 on heavy trading volume on Monday afternoon, after the international climate change agreement was signed in Paris and provided a boost to solar energy stocks.
After two weeks of discussions in Paris, 195 countries reached an agreement on how to address climate change, the Wall Street Journal reports. Part of the deal requires developing nations to find ways to lower greenhouse gas emissions.
Governments hope the accord will encourage the use of newer technologies such as solar panels, the Journal noted.
"In the coming decades the world will have to say goodbye to coal, oil and gas," German Environment Minister Barbara Hendricks told the Journal.
Based in San Jose, CA, SunPower is a global energy company that provides solar technology to residential, commercial and utility customers.
So far today, 3.37 million shares of SunPower have traded, versus its 30-day average of 1.66 million shares.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate SUNPOWER CORP as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SUNPOWER CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SUNPOWER CORP increased its bottom line by earning $1.56 versus $0.57 in the prior year. This year, the market expects an improvement in earnings ($1.99 versus $1.56).
- The debt-to-equity ratio is somewhat low, currently at 0.64, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.74 is somewhat weak and could be cause for future problems.
- The revenue fell significantly faster than the industry average of 9.7%. Since the same quarter one year prior, revenues fell by 42.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The share price of SUNPOWER CORP has not done very well: it is down 5.81% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 275.8% when compared to the same quarter one year ago, falling from $32.03 million to -$56.33 million.
- You can view the full analysis from the report here: SPWR