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Array Technologies Surges 122% in 6 Months: Time to Buy the Stock?
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Key Takeaways
ARRY shares up 122% in 6 months, outperforming peers and key benchmarks as solar demand visibility improves.
ARRY's expanded portfolio and APA Solar buyout boost its position as an integrated solar tracking supplier.
Policy uncertainty and tariffs dampen margins, but improving operations may lead to profit turnaround in 2025.
Shares of Array Technologies (ARRY - Free Report) have gained 121.7% in the past six months, outperforming the industry, its sector as well as the Zacks S&P 500 composite. This leading global provider of solar tracking technology to utility-scale and distributed generation customers who construct, develop and operate solar PV sites is poised to gain from improving demand visibility and an expanded product portfolio.
ARRY stock has moved above its 50- as well as 200-day simple moving average (SMA), signaling a bullish trend. The 50-day and 200-day SMAs are key indicators for traders and analysts to identify support and resistance levels. These are considered particularly important as they are the first markers of an uptrend or downtrend.
Image Source: Zacks Investment Research
ARRY’s peer Sunrun (RUN - Free Report) has gained 8.3% in the past six months, while another peer, First Solar (FSLR - Free Report) , has lost 16.3% in the same time frame.
ARRY Shares Are Cheap
The stock is overvalued compared with its industry. It is currently trading at a price-to-earnings multiple of 12.25, lower than the industry average of 18.27 and the median of 15.87 over five years. It has a Value Score of B.
Image Source: Zacks Investment Research
ARRY is expensive compared to FSLR but cheap compared to RUN.
The Case for ARRY Stock
Array Technologies is well-positioned to benefit from long-term structural growth in renewable energy. The U.S. solar industry is experiencing strong momentum, with utilities, businesses and households increasingly adopting solar and storage. Global solar adoption continues to grow as governments and corporations accelerate efforts to meet decarbonization targets. Array’s solid order backlog ensures revenue generation over the next several quarters.
Also, Array’s move to offer 100% domestically sourced trackers represents a key competitive advantage.
The company has been focused on building a compelling portfolio. Last year, ARRY acquired APA Solar. The acquisition of APA Solar meaningfully broadens Array’s offering to include foundation and fixed-tilt solutions, enabling the company to compete as a more integrated supplier.
This year, the company anticipates delivering both organic growth within its core Array business and inorganic growth with the integration of APA Solar. This outlook is underpinned by a robust order book and improving book-to-bill momentum.
It has strengthened its balance sheet, refinanced higher-cost debt, extended maturities, and improved liquidity.
However, the federal policy changes have created near-term uncertainty, complicating permitting, procurement and supply-chain planning. Despite a 12% drop in module prices, elevated U.S. tariffs have pushed commercial and utility-scale system costs higher. These policy and tariff pressures are squeezing margins and heightening project risk.
ARRY has been incurring losses since the third quarter of 2024, but margins, though negative, have been improving owing to solid operational performance. The consensus estimate shows a turnaround with the company delivering profit for full-year 2025.
Muted Analyst Sentiment
The Zacks Consensus Estimate for 2026 revenues indicates a 17.8% year-over-year increase and the same for earnings implies a 40.1% year-over-year increase. The expected long-term earnings growth rate is pegged at 19.6%. The company has a Growth Score of B.
Image Source: Zacks Investment Research
The consensus estimate for 2026 earnings has witnessed a downward movement of 3 cents in the past 30 days.
The consensus estimate for 2026 earnings of RUN witnessed upward movement but that for FSLR witnessed downward movement in the past 30 days.
Parting Thoughts on ARRY Shares
Array Technologies stands to gain from solar infrastructure growth, supported by product innovation as well as domestic content advantage. Its VGM Score of B instills confidence. Its successful backlog conversion, cost discipline and synergies from APA Solar bode well for long- term growth.
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Array Technologies Surges 122% in 6 Months: Time to Buy the Stock?
Key Takeaways
Shares of Array Technologies (ARRY - Free Report) have gained 121.7% in the past six months, outperforming the industry, its sector as well as the Zacks S&P 500 composite. This leading global provider of solar tracking technology to utility-scale and distributed generation customers who construct, develop and operate solar PV sites is poised to gain from improving demand visibility and an expanded product portfolio.
ARRY stock has moved above its 50- as well as 200-day simple moving average (SMA), signaling a bullish trend. The 50-day and 200-day SMAs are key indicators for traders and analysts to identify support and resistance levels. These are considered particularly important as they are the first markers of an uptrend or downtrend.
Image Source: Zacks Investment Research
ARRY’s peer Sunrun (RUN - Free Report) has gained 8.3% in the past six months, while another peer, First Solar (FSLR - Free Report) , has lost 16.3% in the same time frame.
ARRY Shares Are Cheap
The stock is overvalued compared with its industry. It is currently trading at a price-to-earnings multiple of 12.25, lower than the industry average of 18.27 and the median of 15.87 over five years. It has a Value Score of B.
Image Source: Zacks Investment Research
ARRY is expensive compared to FSLR but cheap compared to RUN.
The Case for ARRY Stock
Array Technologies is well-positioned to benefit from long-term structural growth in renewable energy. The U.S. solar industry is experiencing strong momentum, with utilities, businesses and households increasingly adopting solar and storage. Global solar adoption continues to grow as governments and corporations accelerate efforts to meet decarbonization targets. Array’s solid order backlog ensures revenue generation over the next several quarters.
Also, Array’s move to offer 100% domestically sourced trackers represents a key competitive advantage.
The company has been focused on building a compelling portfolio. Last year, ARRY acquired APA Solar. The acquisition of APA Solar meaningfully broadens Array’s offering to include foundation and fixed-tilt solutions, enabling the company to compete as a more integrated supplier.
This year, the company anticipates delivering both organic growth within its core Array business and inorganic growth with the integration of APA Solar. This outlook is underpinned by a robust order book and improving book-to-bill momentum.
It has strengthened its balance sheet, refinanced higher-cost debt, extended maturities, and improved liquidity.
However, the federal policy changes have created near-term uncertainty, complicating permitting, procurement and supply-chain planning. Despite a 12% drop in module prices, elevated U.S. tariffs have pushed commercial and utility-scale system costs higher. These policy and tariff pressures are squeezing margins and heightening project risk.
ARRY has been incurring losses since the third quarter of 2024, but margins, though negative, have been improving owing to solid operational performance. The consensus estimate shows a turnaround with the company delivering profit for full-year 2025.
Muted Analyst Sentiment
The Zacks Consensus Estimate for 2026 revenues indicates a 17.8% year-over-year increase and the same for earnings implies a 40.1% year-over-year increase. The expected long-term earnings growth rate is pegged at 19.6%. The company has a Growth Score of B.
Image Source: Zacks Investment Research
The consensus estimate for 2026 earnings has witnessed a downward movement of 3 cents in the past 30 days.
The consensus estimate for 2026 earnings of RUN witnessed upward movement but that for FSLR witnessed downward movement in the past 30 days.
Parting Thoughts on ARRY Shares
Array Technologies stands to gain from solar infrastructure growth, supported by product innovation as well as domestic content advantage. Its VGM Score of B instills confidence. Its successful backlog conversion, cost discipline and synergies from APA Solar bode well for long- term growth.
However, given muted analyst sentiment and federal policy changes, maintaining a wait-and-see stance appears to be a sensible approach for this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.