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Shoals Technologies (SHLS) Surges 12.4%: Is This an Indication of Further Gains?

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Shoals Technologies Group (SHLS - Free Report) shares rallied 12.4% in the last trading session to close at $8.91. 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 17% gain over the past four weeks.

Shoals Technologies gains from its position as a leading provider of electrical balance of systems solutions in the energy transition space. The company emphasizes innovative technologies and system designs that help customers enhance installation efficiency and safety while also boosting overall system performance and reliability.

Its strong patent portfolio further supports growth, particularly through protection of its Big Lead Assembly technology, which strengthens its competitive edge, generates revenue, and underlines its market leadership. Recently, the company secured an additional patent that reduces installation time and labor costs while ensuring long-term performance in solar projects.

This solar energy equipment supplier is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $130.12 million, up 27.4% 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 Shoals Technologies, the consensus EPS estimate for the quarter has been revised 1.6% 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 SHLS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Shoals Technologies belongs to the Zacks Solar industry. Another stock from the same industry, Tigo Energy, Inc. (TYGO - Free Report) , closed the last trading session 2.9% higher at $2.45. Over the past month, TYGO has returned 68.8%.

Tigo Energy, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.05. Compared to the company's year-ago EPS, this represents a change of +77.3%. Tigo Energy, Inc. currently boasts a Zacks Rank of #3 (Hold).


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