SolarEdge Technologies (SEDG) Gains But Lags Market: What You Should Know
SolarEdge Technologies (SEDG) closed at $76.81 in the latest trading session, marking a +0.1% move from the prior day. This change lagged the S&P 500's 0.47% gain on the day. Elsewhere, the Dow gained 0.95%, while the tech-heavy Nasdaq added 2.3%.
Prior to today's trading, shares of the photovoltaic products maker had lost 39.97% over the past month. This has was narrower than the Oils-Energy sector's loss of 53.98% and lagged the S&P 500's loss of 28.7% in that time.
Investors will be hoping for strength from SEDG as it approaches its next earnings release. The company is expected to report EPS of $1.28, up 100% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $431.19 million, up 58.6% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.64 per share and revenue of $1.88 billion. These totals would mark changes of +27.03% and +31.96%, respectively, from last year.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 15.63% higher. SEDG is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that SEDG has a Forward P/E ratio of 13.61 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.75.
Meanwhile, SEDG's PEG ratio is currently 0.54. 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. The Solar was holding an average PEG ratio of 0.54 at yesterday's closing price.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SEDG in the coming trading sessions, be sure to utilize Zacks.com.
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SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report
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