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Array Technologies, Inc. (ARRY) Stock Drops Despite Market Gains: Important Facts to Note

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Array Technologies, Inc. (ARRY - Free Report) closed at $6.89 in the latest trading session, marking a -2.13% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.54% for the day. Meanwhile, the Dow experienced a rise of 0.52%, and the technology-dominated Nasdaq saw an increase of 0.74%.

Heading into today, shares of the company had lost 6.63% over the past month, lagging the Oils-Energy sector's loss of 1.43% and the S&P 500's gain of 4.2%.

The investment community will be paying close attention to the earnings performance of Array Technologies, Inc. in its upcoming release. The company is predicted to post an EPS of $0.19, indicating a 5% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $285.71 million, indicating a 11.7% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.64 per share and a revenue of $1.1 billion, signifying shifts of +6.67% and +20.39%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Array Technologies, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.68% upward. Right now, Array Technologies, Inc. possesses a Zacks Rank of #2 (Buy).

Looking at valuation, Array Technologies, Inc. is presently trading at a Forward P/E ratio of 11.09. This valuation marks a discount compared to its industry average Forward P/E of 15.91.

Investors should also note that ARRY has a PEG ratio of 0.51 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. The Solar industry currently had an average PEG ratio of 0.6 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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