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SolarEdge (SEDG) Moves 8.9% Higher: Will This Strength Last?

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SolarEdge Technologies (SEDG - Free Report) shares ended the last trading session 8.9% higher at $296.51. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 10.7% loss over the past four weeks.

The latest uptick in the share performance of SolarEdge Technologies can be attributed to recent market expectations that projects the Federal Reserve to slow its pace of rate hike increases. Since solar investments require high levels of capital investment, so this rate outlook must have boosted SEDG’s share price.

This photovoltaic products maker is expected to post quarterly earnings of $1.95 per share in its upcoming report, which represents a year-over-year change of +62.5%. Revenues are expected to be $927.83 million, up 41.6% 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 2.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates 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 part of the Zacks Solar industry. Emeren Group (SOL - Free Report) , another stock in the same industry, closed the last trading session 4.4% higher at $4.24. SOL has returned -13.8% in the past month.

For Emeren Group, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.08. This represents a change of +100% from what the company reported a year ago. Emeren Group currently has a Zacks Rank of #3 (Hold).


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