Sunrun
This stock also could be more of a full-year story, but it offers a very solid entry point at current trading levels. Sunrun Inc. (NASDAQ: RUN) designs, develops, installs, sells, owns and maintains residential solar energy systems in the United States. The company also sells solar energy systems and products, such as panels and racking, and solar leads generated to customers. In addition, the company offers battery storage, along with solar energy systems. Its primary customers are residential homeowners.
Sunrun markets and sells its products through direct-to-consumer approach across online, retail, mass media, digital media, canvassing, field marketing and referral channels, as well as its partner network.
The analysts noted this about the company’s guidance:
On margins, the company guided to 1Q23 net subscriber value of $10k (at a 6% discount rate) and expects to continue growing net subscriber value throughout 2023. We look for commentary on the quarterly cadence of customer margins and if there may be more pressure in the second half of 2023 assuming a pull back in installation growth. That said, easing component pricing trends, especially for modules, can likely continue to buoy healthy margin expansion throughout the year, in our view.
The Goldman Sachs target price is $27. The consensus target is up at $37.36, but Sunrun stock closed at $19.78 a share on Wednesday.
Two of these companies stand a solid chance to beat earnings estimates and raise guidance when their first-quarter prints drop. Three more look like top ideas for now and the rest of the year. It may make sense to buy partial positions in front of earnings because, given the earnings-related stress on Wall Street, any company, regardless of sector, will be demolished if they miss estimates, give lousy forward guidance or, worst case, do both.
Originally published at 24/7 Wall St.
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