SolarEdge Technologies (SEDG) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest trading session, SolarEdge Technologies (SEDG) closed at $69.11, marking a -0.23% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.23%. Meanwhile, the Dow experienced a rise of 1.06%, and the technology-dominated Nasdaq saw an increase of 1.7%.
Shares of the photovoltaic products maker witnessed a loss of 28.65% over the previous month, trailing the performance of the Oils-Energy sector with its loss of 4.69% and the S&P 500's gain of 0.94%.
Market participants will be closely following the financial results of SolarEdge Technologies in its upcoming release. The company's earnings per share (EPS) are projected to be -$1.34, reflecting a 146.85% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $325.35 million, indicating a 63.47% decrease compared to the same quarter of the previous year.
Investors might also notice recent changes to analyst estimates for SolarEdge Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 5.74% lower within the past month. At present, SolarEdge Technologies boasts a Zacks Rank of #3 (Hold).
In terms of valuation, SolarEdge Technologies is currently trading at a Forward P/E ratio of 114.41. This indicates a premium in contrast to its industry's Forward P/E of 11.17.
It's also important to note that SEDG currently trades at a PEG ratio of 6.11. 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. SEDG's industry had an average PEG ratio of 1.03 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 206, placing it within the bottom 19% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report
