SolarEdge Technologies (SEDG) Gains But Lags Market: What You Should Know
SolarEdge Technologies (SEDG) closed the latest trading day at $70.44, indicating a +0.34% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.19%.
The photovoltaic products maker's stock has dropped by 27.2% in the past month, falling short of the Oils-Energy sector's loss of 4.39% and the S&P 500's gain of 2.48%.
The investment community will be closely monitoring the performance of SolarEdge Technologies in its forthcoming earnings report. In that report, analysts expect SolarEdge Technologies to post earnings of -$1.34 per share. This would mark a year-over-year decline of 146.85%. Our most recent consensus estimate is calling for quarterly revenue of $325.35 million, down 63.47% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for SolarEdge Technologies. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.29% upward. As of now, SolarEdge Technologies holds a Zacks Rank of #3 (Hold).
Digging into valuation, SolarEdge Technologies currently has a Forward P/E ratio of 108.76. Its industry sports an average Forward P/E of 11.28, so one might conclude that SolarEdge Technologies is trading at a premium comparatively.
Investors should also note that SEDG has a PEG ratio of 5.81 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Solar industry held an average PEG ratio of 1.04.
The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 219, positioning it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report
