Ormat Technologies (ORA) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Ormat Technologies (ORA) closed at $85.43, marking a -1.17% move from the previous day. This change lagged the S&P 500's daily loss of 0.37%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 1.18%.
Coming into today, shares of the geothermal company had gained 2.67% in the past month. In that same time, the Oils-Energy sector gained 3.05%, while the S&P 500 gained 7.18%.
Investors will be hoping for strength from Ormat Technologies as it approaches its next earnings release. On that day, Ormat Technologies is projected to report earnings of $0.42 per share, which would represent year-over-year growth of 90.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $201.33 million, up 19.08% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.97 per share and revenue of $842.49 million. These totals would mark changes of +20.86% and +14.76%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Ormat Technologies. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 6.28% lower within the past month. Ormat Technologies is currently a Zacks Rank #3 (Hold).
Digging into valuation, Ormat Technologies currently has a Forward P/E ratio of 43.88. This represents a premium compared to its industry's average Forward P/E of 20.01.
Also, we should mention that ORA has a PEG ratio of 1.89. 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. Alternative Energy - Other stocks are, on average, holding a PEG ratio of 1.36 based on yesterday's closing prices.
The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 27% 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.
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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Ormat Technologies, Inc. (ORA) : Free Stock Analysis Report
