SolarEdge Technologies (SEDG) Gains As Market Dips: What You Should Know
SolarEdge Technologies (SEDG) closed at $263.83 in the latest trading session, marking a +0.76% move from the prior day. This move outpaced the S&P 500's daily loss of 3.53%. Elsewhere, the Dow lost 3.44%, while the tech-heavy Nasdaq lost 3.73%.
Prior to today's trading, shares of the photovoltaic products maker had gained 13.11% over the past month. This has outpaced the Oils-Energy sector's loss of 2.27% and the S&P 500's gain of 2.89% in that time.
Investors will be hoping for strength from SEDG as it approaches its next earnings release, which is expected to be November 2, 2020. The company is expected to report EPS of $0.82, down 32.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $341.98 million, down 16.7% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.86 per share and revenue of $1.51 billion, which would represent changes of -13.06% and +5.63%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SEDG. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.35% higher within the past month. SEDG is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, SEDG is holding a Forward P/E ratio of 67.83. This represents a premium compared to its industry's average Forward P/E of 38.32.
Meanwhile, SEDG's PEG ratio is currently 2.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SEDG's industry had an average PEG ratio of 2.3 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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