SunRun (RUN) Looks Like it Could be Setting up for a Breakout

Sunrun Inc. (RUN) provides homeowners with clean, affordable solar energy and storage. It engages in the design, development, installation, sale, ownership, and maintenance of residential solar energy systems in the United States. It also sells solar leads…

Sunrun Inc. (RUN) just posted its latest earnings results for the third quarter where it reported revenue of $439 million, which was a 109% year over year increase. However, net income fell from a loss of $85 million in the third quarter of 2020 to a loss of $241 million in the most recent quarter.

As of the end of the third quarter, RUN has a current ratio of 1.88 indicating it has more than enough liquidity to handle short-term obligations. For the current quarter, analysts expect sales to rise 29.2% year over year, while earnings are expected to surge 98.7% year over year.

But the stock looks overvalued with a trailing P/E of 894 and a forward P/E of 294.12. RUN started the year with bearish momentum, but performance has turned positive since early October. This is evident in the chart below.

Take a look at the 1-year chart of RUN below with my added notations…

See chart and continue reading at