SolarEdge Technologies (SEDG) Stock Slides as Market Rises: Facts to Know Before You Trade
The latest trading session saw SolarEdge Technologies (SEDG) ending at $68.01, denoting a -1.82% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 1.07%. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw an increase of 1.74%.
Prior to today's trading, shares of the photovoltaic products maker had lost 16.34% over the past month. This has lagged the Oils-Energy sector's loss of 0.76% and the S&P 500's gain of 2.93% in that time.
The investment community will be closely monitoring the performance of SolarEdge Technologies in its forthcoming earnings report. The company is scheduled to release its earnings on February 20, 2024. The company is forecasted to report an EPS of -$1.55, showcasing a 154.2% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $321.52 million, indicating a 63.9% downward movement from the same quarter 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.47% lower within the past month. Right now, SolarEdge Technologies possesses a Zacks Rank of #3 (Hold).
Investors should also note SolarEdge Technologies's current valuation metrics, including its Forward P/E ratio of 112.88. This indicates a premium in contrast to its industry's Forward P/E of 11.19.
Investors should also note that SEDG has a PEG ratio of 6.89 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Solar industry had an average PEG ratio of 1.35.
The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 184, placing it within the bottom 27% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report
