Ormat Technologies (ORA) Gains But Lags Market: What You Should Know
Ormat Technologies (ORA) closed the most recent trading day at $87.70, moving +0.25% from the previous trading session. This change lagged the S&P 500's 0.62% gain on the day. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq lost 5.66%.
Prior to today's trading, shares of the geothermal company had gained 4.89% over the past month. This has outpaced the Oils-Energy sector's gain of 2.66% and the S&P 500's gain of 3.44% in that time.
Ormat Technologies will be looking to display strength as it nears its next earnings release. In that report, analysts expect Ormat Technologies to post earnings of $0.42 per share. This would mark year-over-year growth of 90.91%. Meanwhile, our latest consensus estimate is calling for revenue of $201.33 million, up 19.08% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.10 per share and revenue of $842.49 million, which would represent changes of +28.83% and +14.76%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Ormat 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 11.57% higher. Ormat Technologies is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Ormat Technologies is holding a Forward P/E ratio of 41.62. This valuation marks a premium compared to its industry's average Forward P/E of 19.9.
It is also worth noting that ORA currently has a PEG ratio of 1.79. 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. The Alternative Energy - Other industry currently had an average PEG ratio of 1.38 as of yesterday's close.
The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% 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.
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Ormat Technologies, Inc. (ORA) : Free Stock Analysis Report
