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

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SolarEdge Technologies (SEDG - Free Report) closed at $263.90 in the latest trading session, marking a +0.3% move from the prior day. This move outpaced the S&P 500's daily gain of 0.03%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 1.37%.

Heading into today, shares of the photovoltaic products maker had gained 7.58% over the past month, outpacing the Oils-Energy sector's gain of 3.85% and the S&P 500's gain of 3.43% in that time.

SolarEdge Technologies will be looking to display strength as it nears its next earnings release, which is expected to be August 1, 2023. In that report, analysts expect SolarEdge Technologies to post earnings of $2.54 per share. This would mark year-over-year growth of 167.37%. Meanwhile, our latest consensus estimate is calling for revenue of $989.17 million, up 35.92% from the prior-year quarter.

SEDG's full-year Zacks Consensus Estimates are calling for earnings of $10.86 per share and revenue of $4.1 billion. These results would represent year-over-year changes of +82.52% and +31.69%, respectively.

Any recent changes to analyst estimates for SolarEdge Technologies should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.28% higher. SolarEdge Technologies is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, SolarEdge Technologies currently has a Forward P/E ratio of 24.22. This represents a discount compared to its industry's average Forward P/E of 28.16.

It is also worth noting that SEDG currently has a PEG ratio of 0.73. 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 0.73 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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