In the latest trading session, SolarEdge Technologies (SEDG) closed at $111.16, marking a -0.63% move from the previous day. This move lagged the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Heading into today, shares of the photovoltaic products maker had gained 7.96% over the past month, outpacing the Oils-Energy sector's loss of 7.63% and the S&P 500's gain of 3.63% in that time.
Investors will be hoping for strength from SEDG as it approaches its next earnings release, which is expected to be February 19, 2020. On that day, SEDG is projected to report earnings of $1.30 per share, which would represent year-over-year growth of 106.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $415.30 million, up 57.51% from the year-ago period.
Investors should also note any recent changes to analyst estimates for SEDG. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. SEDG is currently a Zacks Rank #3 (Hold).
Looking at its valuation, SEDG is holding a Forward P/E ratio of 21.92. Its industry sports an average Forward P/E of 21.92, so we one might conclude that SEDG is trading at a no noticeable deviation comparatively.
We can also see that SEDG currently has a PEG ratio of 1. 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. Solar stocks are, on average, holding a PEG ratio of 0.98 based on yesterday's closing prices.
The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 39% 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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