SunPower Shares Face Test After Impressive Rally

SunPower's stock momentum has hit a pause following a substantial upward surge. The solar energy innovator, which recently captured market attention with record-breaking earnings and a strategic acquisition, saw its shares retreat significantly during Tuesday's trading session. This development raises a crucial question for investors: is this merely a temporary pullback, or does it signal the end of the recent rally?

A key development driving SunPower's recent performance is its completed takeover of Sunder Energy. This strategic move has dramatically elevated the company's market position, launching it into the top five residential solar providers in the United States. The acquisition has massively expanded SunPower's operational footprint, growing its presence from 22 to 45 states. Furthermore, the company's sales force has nearly doubled, jumping from 881 to 1,744 employees. Management anticipates this consolidation will more than double the booking volume in the upcoming fourth quarter.

Financial Performance Shows Sustained Turnaround

The company's operational health has demonstrated a remarkable and sustained improvement. For Q3 2025, SunPower posted a record operating profit of $3.12 million, achieved on revenue of $70.0 million. This result marks a significant corporate milestone—three consecutive profitable quarters, effectively ending a challenging four-year period of consistent losses. The leadership team has expressed strong confidence, issuing a bullish forecast for Q4 that projects further record performance: $83.3 million in revenue and an operating profit of $3.56 million.

Stock Volatility Amid Positive Sentiment

The flood of positive news initially propelled SunPower's equity value sharply higher last week:
* A significant jump of 12.32% occurred on October 21, following the quarterly earnings release.
* The upward trend continued, adding another 11.11% by October 23.
* However, a setback came on October 28, with shares declining 4.90% to close at $1.94 on lower trading volume.

Should investors sell immediately? Or is it worth buying SunPower?

Despite this recent dip, the stock still maintains a robust two-week gain of 15.48%. Investor sentiment was also tested by news that a company director sold 20,000 shares on October 23 at a price of $2.04 per share.

Analyst Community Maintains Bullish Outlook

The broader financial community continues to reward SunPower's strategic direction. Cantor Fitzgerald reaffirmed its "Overweight" rating on the stock and subsequently raised its price target. Northland Securities also upgraded its stance on Complete Solaria, the entity through which SunPower operates. According to data from ChartMill, the analyst consensus is strongly positive, with eight out of ten covering analysts issuing a "Buy" recommendation.

The critical question remains whether SunPower can maintain its current trajectory. The company appears attractively valued, trading at a price-to-sales multiple of 0.53, which is notably lower than the industry average of approximately 2.0. Profitability is expected to continue through 2026. The market now awaits the final quarterly figures, scheduled for release on November 12, while technical analysts are watching for key support to hold at the $1.85 level, which will provide the next significant directional signal.