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

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SolarEdge Technologies (SEDG) closed at $306.42 in the latest trading session, marking a -0.15% move from the prior day. This change lagged the S&P 500's 0.95% gain on the day. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq lost 0.25%.

Prior to today's trading, shares of the photovoltaic products maker had gained 36.17% over the past month. This has outpaced the Oils-Energy sector's gain of 8.26% and the S&P 500's gain of 0.1% in that time.

Investors will be hoping for strength from SolarEdge Technologies as it approaches its next earnings release. The company is expected to report EPS of $1.34, up 4.69% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $726.4 million, up 51.31% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.81 per share and revenue of $2.98 billion. These totals would mark changes of +41.58% and +51.74%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for SolarEdge Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.23% higher within the past month. SolarEdge Technologies is currently a Zacks Rank #3 (Hold).

Digging into valuation, SolarEdge Technologies currently has a Forward P/E ratio of 45.06. This valuation marks a premium compared to its industry's average Forward P/E of 44.19.

Also, we should mention that SEDG has a PEG ratio of 1.58. 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 9.01 at yesterday's closing price.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 12% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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