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SolarEdge Technologies (SEDG) Dips More Than Broader Markets: What You Should Know

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Zacks Equity Research
·3 min read
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SolarEdge Technologies (SEDG) closed the most recent trading day at $320.40, moving -1.69% from the previous trading session. This change lagged the S&P 500's 0.04% loss on the day. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 0.25%.

Coming into today, shares of the photovoltaic products maker had lost 9.44% in the past month. In that same time, the Oils-Energy sector gained 0.92%, while the S&P 500 gained 2.37%.

Wall Street will be looking for positivity from SEDG as it approaches its next earnings report date. This is expected to be February 16, 2021. On that day, SEDG is projected to report earnings of $0.87 per share, which would represent a year-over-year decline of 47.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $354.64 million, down 15.2% from the year-ago period.

Investors might also notice recent changes to analyst estimates for SEDG. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 0.12% higher within the past month. SEDG is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note SEDG's current valuation metrics, including its Forward P/E ratio of 69.58. Its industry sports an average Forward P/E of 69.58, so we one might conclude that SEDG is trading at a no noticeable deviation comparatively.

Also, we should mention that SEDG has a PEG ratio of 2.32. 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 Solar industry currently had an average PEG ratio of 2.26 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 42% 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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Zacks Investment Research