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SolarEdge (SEDG) Moves 9.7% Higher: Will This Strength Last?

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SolarEdge Technologies (SEDG - Free Report) shares rallied 9.7% in the last trading session to close at $325.19. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.2% gain over the past four weeks.

It has recently been revealed that Institutional investors like Comerica Bank, Kestra Advisory services as well as Nisa Investment Advisors have bought shares of SolarEdge Technologies. This must have been the major catalyst behind the latest uptick in this stock’s price, with investors probably anticipating more such stake purchases in coming days.

This photovoltaic products maker is expected to post quarterly earnings of $1.40 per share in its upcoming report, which represents a year-over-year change of +9.4%. Revenues are expected to be $726.28 million, up 51.3% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For SolarEdge, the consensus EPS estimate for the quarter has been revised 2.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SEDG going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

SolarEdge is a member of the Zacks Solar industry. One other stock in the same industry, Sunrun (RUN - Free Report) , finished the last trading session 6.4% higher at $23.79. RUN has returned -5.7% over the past month.

Sunrun's consensus EPS estimate for the upcoming report has changed +1.5% over the past month to -$0.20. Compared to the company's year-ago EPS, this represents a change of -42.9%. Sunrun currently boasts a Zacks Rank of #2 (Buy).


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