SunPower Corporation (SPWR)

SunPower stock forecast: buy or sell

SunPower stock outlook

  • SunPower closed yesterday at $9.23 after collapsing a -5.62% and broke a streak of 5 sessions in positive.
  • Price is drawing a scaled uptrend since mid-March with higher tops and higher bottoms. This uptrend marked a 129.03% gain
  • SunPower Corporation delivers solar solutions worldwide. It operates through SunPower Energy Services and SunPower Technologies segments.
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Important note:
The thoughts expressed in this post are personal and not recommendations for you to buy or sell shares. The author of this document does not have any knowledge of the particular circumstances of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are published for informational reasons only

SunPower stock chart overview

Should I buy SunPower stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is SPWR stock a buy?

Currently, SunPower stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean SPWR will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell SunPower stock?

When you own a stock with some profit, it's really difficult to decide the correct moment to sell and get your profits. Trading strategies allow us to avoid impulsive decisions based on our personal moods or the buzz surrounding the market. When selling, as well as buying, our setups are very easy to follow and are only valid for selling shares in your porfolio, not for selling short SPWR stock

As a golden rule, you should not mantain an operation that shows a higher than expected losses upon the buy. The timing to sell shares should always be dictated by the stop-loss (automatic or manual)

Is it time to sell SunPower stock?

In the current situation of SunPower there is not any eligible sell setup, so SunPower stock holders with operations in green can keep their positions

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Analysts' recommendations to buy or sell SunPower stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, just one rating was published for SunPower

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SunPower ratings

Brokerage firmRating
Jun 17th, 2020
Morgan Stanley Sell

Technical analysis

Since in mid-March, SunPower has been printing an uptrend that by now marked an amazing 129.03%. The price action shows higher peaks and higher troughs, and along the way provided some buying opportunities for those who wanted to invest. Latest pullback was on June 24, when price bounced at $6.92. Currently, it swings in a consolidation between its last top ($10.56) and its last bottom ($6.92)

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show market momentum. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Market investors use supports and resistances as a way to spot price points in the stock price action that may act as obstacles, containing the price of a stock to move in certain direction. Supports are levels where the price may stop as it falls. This means that the price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down this level, it will probably continue descending until meeting another support level. On the other side, resistance levels are where the price may find resistance as it moves up. In the same way, the price is more liable to "rebound" at this level, and if it finally breaks this level, the price will climb more easily until it meets the next resistance

The current resistance levels are:

  • R1: $9.26 (0.33% above)
  • R2: $9.55 (3.47% above)
  • R3: $9.60 (4.01% above)
  • The current supports are:

  • S1: $9.19 (-0.43% below)
  • S2: $9.07 (-1.73% below)
  • S3: $9.00 (-2.49% below)
  • Bollinger bands

    The so-called Bollinger bands are a widely known studio created by John Bollinger. It is composed of 3 bands that are drawn superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price surpassed the upper band on Thursday, the price corrected downwards by 12.59%. The price is moving near to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a sell signal, as price can move in these levels for many days and weeks

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that track price changes to detect when the share or financial asset is overbought or oversold. Like other oscillation indicators, the RSI ranges between 0 and 100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders

    After crossing up the overbought zone yesterday, Relative Strength Indicator dropped back below with a value of 63.63. This is a weak signal for the stock and it must tip us off of weakness in the price action

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    Earnings and financials

    In early May, SunPower hosted the shareholders call and released the 1st-quarter report. SunPower posted first-quarter earnings of $-0.10 per share on sales of $449.2 million. The market estimate was $-0.18 per share on revenue of $446.2 million.

    Compared to the same quarter one year ago, EPS was $-0.41, so current EPS means a improvement of 75.61%. Revenue climbed a 9.14% on an annualized basis in the first-quarter, from $411.6M to $449.2M last quarter.

    SunPower is hosting the earnings call on early next August. Analysts predict an EPS of $-0.38, that is a 280% lower than previous quarter. If you hold or you are looking to buy SunPower shares, be careful as financial reporting day usually has a very high volatility, and price can jump up or down with unsually low liquidity and not honouring your buy or stop-loss orders. It's always good to review company's website to confirm time and details about the earnings call and the earnings report.

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