In the latest trading session, SolarEdge Technologies (SEDG) closed at $290.18, marking a -0.2% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.38%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq lost 4.19%.
Coming into today, shares of the photovoltaic products maker had gained 1.57% in the past month. In that same time, the Oils-Energy sector gained 0.6%, while the S&P 500 gained 3.78%.
Wall Street will be looking for positivity from SolarEdge Technologies as it approaches its next earnings report date. On that day, SolarEdge Technologies is projected to report earnings of $2.46 per share, which would represent year-over-year growth of 158.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $991.24 million, up 36.2% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.73 per share and revenue of $4.12 billion, which would represent changes of +80.34% and +32.59%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for SolarEdge Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.4% higher. SolarEdge Technologies is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that SolarEdge Technologies has a Forward P/E ratio of 27.1 right now. This represents a premium compared to its industry's average Forward P/E of 26.84.
We can also see that SEDG currently has a PEG ratio of 0.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SEDG's industry had an average PEG ratio of 0.87 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SEDG in the coming trading sessions, be sure to utilize Zacks.com.
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