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SolarEdge Technologies (SEDG) Dips More Than Broader Markets: What You Should Know
In the latest trading session, SolarEdge Technologies (SEDG - Free Report) closed at $310.51, marking a -0.87% move from the previous day. This change lagged the S&P 500's 0.72% loss on the day. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.27%.
Heading into today, shares of the photovoltaic products maker had lost 1.25% over the past month, lagging the Oils-Energy sector's gain of 1.38% and outpacing the S&P 500's loss of 9.06% in that time.
SolarEdge Technologies will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.48, up 2.07% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $826.77 million, up 57.06% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.66 per share and revenue of $3.08 billion. These totals would mark changes of +17.67% and +56.83%, respectively, from last year.
Any recent changes to analyst estimates for SolarEdge Technologies should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. The Zacks Consensus EPS estimate has moved 4.83% lower within the past month. SolarEdge Technologies is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, SolarEdge Technologies is currently trading at a Forward P/E ratio of 55.33. Its industry sports an average Forward P/E of 59.32, so we one might conclude that SolarEdge Technologies is trading at a discount comparatively.
Also, we should mention that SEDG has a PEG ratio of 1.9. 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 industry currently had an average PEG ratio of 1.76 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.