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

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SolarEdge Technologies (SEDG) closed the most recent trading day at $286.34, moving -1.78% from the previous trading session. This change lagged the S&P 500's 3.06% gain on the day. At the same time, the Dow added 2.68%, and the tech-heavy Nasdaq gained 0.05%.

Prior to today's trading, shares of the photovoltaic products maker had gained 9.42% over the past month. This has outpaced the Oils-Energy sector's loss of 12.66% and the S&P 500's loss of 4.31% in that time.

SolarEdge Technologies will be looking to display strength as it nears its next earnings release. On that day, SolarEdge Technologies is projected to report earnings of $1.40 per share, which would represent year-over-year growth of 9.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $726.28 million, up 51.29% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.91 per share and revenue of $3.02 billion, which would represent changes of +43.66% and +54%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for SolarEdge Technologies. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.1% lower. SolarEdge Technologies is currently a Zacks Rank #3 (Hold).

Digging into valuation, SolarEdge Technologies currently has a Forward P/E ratio of 42.2. Its industry sports an average Forward P/E of 42.15, so we one might conclude that SolarEdge Technologies is trading at a premium comparatively.

It is also worth noting that SEDG currently has a PEG ratio of 1.48. 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. SEDG's industry had an average PEG ratio of 8.72 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow SEDG in the coming trading sessions, be sure to utilize Zacks.com.


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