Yahoo Finance SolarEdge Technologies (SEDG) Outpaces Stock Market Gains: What You Should Know
SolarEdge Technologies (SEDG) closed the most recent trading day at $272.31, moving +1.91% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.89%. Elsewhere, the Dow gained 1.2%, while the tech-heavy Nasdaq lost 0.68%.
Prior to today's trading, shares of the photovoltaic products maker had lost 12.4% over the past month. This has lagged the Oils-Energy sector's loss of 9.72% and the S&P 500's loss of 3.9% in that time.
Investors will be hoping for strength from SolarEdge Technologies as it approaches its next earnings release. In that report, analysts expect SolarEdge Technologies to post earnings of $1.95 per share. This would mark year-over-year growth of 62.5%. Meanwhile, our latest consensus estimate is calling for revenue of $927.83 million, up 41.64% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.44 per share and revenue of $4.04 billion. These totals would mark changes of +58.66% and +30.01%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for SolarEdge Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2% higher. SolarEdge Technologies is currently a Zacks Rank #3 (Hold).
Digging into valuation, SolarEdge Technologies currently has a Forward P/E ratio of 28.31. Its industry sports an average Forward P/E of 24.44, so we one might conclude that SolarEdge Technologies is trading at a premium comparatively.
Also, we should mention that SEDG has a PEG ratio of 0.91. 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. The Solar industry currently had an average PEG ratio of 0.69 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report
