SolarEdge Technologies (SEDG) Stock Sinks As Market Gains: What You Should Know

SolarEdge Technologies (SEDG) closed the most recent trading day at $314.27, moving -0.61% from the previous trading session. This move lagged the S&P 500's daily gain of 1.68%. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq lost 1.7%.

Coming into today, shares of the photovoltaic products maker had gained 1.77% in the past month. In that same time, the Oils-Energy sector lost 8.65%, while the S&P 500 lost 6.68%.

SolarEdge Technologies will be looking to display strength as it nears 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%. Our most recent consensus estimate is calling for quarterly revenue of $927.83 million, up 41.64% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.44 per share and revenue of $4.04 billion, which would represent changes of +58.66% and +30.01%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for SolarEdge Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 3.54% higher. SolarEdge Technologies is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that SolarEdge Technologies has a Forward P/E ratio of 33.5 right now. Its industry sports an average Forward P/E of 33.5, so we one might conclude that SolarEdge Technologies is trading at a no noticeable deviation comparatively.

It is also worth noting that SEDG currently has a PEG ratio of 1.08. 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 0.85 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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