SolarEdge Technologies (SEDG) Stock Declines While Market Improves: Some Information for Investors
The latest trading session saw SolarEdge Technologies (SEDG) ending at $96.03, denoting a -1.08% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.17%. Meanwhile, the Dow experienced a drop of 0.05%, and the technology-dominated Nasdaq saw an increase of 0.2%.
Shares of the photovoltaic products maker witnessed a gain of 23.39% over the previous month, beating the performance of the Oils-Energy sector with its gain of 1.03% and the S&P 500's gain of 4.71%.
The upcoming earnings release of SolarEdge Technologies will be of great interest to investors. On that day, SolarEdge Technologies is projected to report earnings of -$0.87 per share, which would represent a year-over-year decline of 130.42%. Simultaneously, our latest consensus estimate expects the revenue to be $327.59 million, showing a 63.22% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.59 per share and revenue of $3.03 billion, indicating changes of -22.86% and -2.7%, respectively, compared to the previous year.
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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 16.36% lower. SolarEdge Technologies is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note SolarEdge Technologies's current valuation metrics, including its Forward P/E ratio of 21.16. This represents a discount compared to its industry's average Forward P/E of 21.51.
It's also important to note that SEDG currently trades at a PEG ratio of 1.13. 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. By the end of yesterday's trading, the Solar industry had an average PEG ratio of 0.89.
The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 222, positioning it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report
