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

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In the latest trading session, SolarEdge Technologies (SEDG - Free Report) closed at $81, marking a -0.15% move from the previous day. This change lagged the S&P 500's 0.8% gain on the day. Elsewhere, the Dow gained 0.47%, while the tech-heavy Nasdaq added 1.12%.

Coming into today, shares of the photovoltaic products maker had lost 2.14% in the past month. In that same time, the Oils-Energy sector gained 0.62%, while the S&P 500 lost 1.07%.

Wall Street will be looking for positivity from SEDG as it approaches its next earnings report date. In that report, analysts expect SEDG to post earnings of $1.19 per share. This would mark year-over-year growth of 38.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $399.70 million, up 68.95% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.92 per share and revenue of $1.39 billion, which would represent changes of +23.66% and +48.72%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for SEDG. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SEDG is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, SEDG currently has a Forward P/E ratio of 20.68. Its industry sports an average Forward P/E of 22.14, so we one might conclude that SEDG is trading at a discount comparatively.

Investors should also note that SEDG has a PEG ratio of 0.94 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Solar was holding an average PEG ratio of 0.94 at yesterday's closing price.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% 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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