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SolarEdge Technologies (SEDG) Gains As Market Dips: What You Should Know

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SolarEdge Technologies (SEDG) closed at $269.03 in the latest trading session, marking a +1.38% move from the prior day. This move outpaced the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 0.06%.

Prior to today's trading, shares of the photovoltaic products maker had gained 0.28% over the past month. This has outpaced the Oils-Energy sector's loss of 18.41% and the S&P 500's loss of 1.89% in that time.

Wall Street will be looking for positivity from SolarEdge Technologies as it approaches its next earnings report date. The company is expected to report EPS of $1.40, up 9.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $726.28 million, up 51.29% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.91 per share and revenue of $3.02 billion. These totals would mark changes of +43.66% and +54%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for SolarEdge Technologies. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, 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 0.37% higher. SolarEdge Technologies is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that SolarEdge Technologies has a Forward P/E ratio of 38.42 right now. For comparison, its industry has an average Forward P/E of 38.32, which means SolarEdge Technologies is trading at a premium to the group.

We can also see that SEDG currently has a PEG ratio of 1.34. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Solar was holding an average PEG ratio of 1.34 at yesterday's closing price.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% 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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