SolarEdge Technologies (SEDG - Free Report) closed at $85.55 in the latest trading session, marking a -1.91% move from the prior day. This move lagged the S&P 500's daily gain of 0.91%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq gained 1.02%.
Prior to today's trading, shares of the photovoltaic products maker had gained 16.11% over the past month. This has outpaced the Oils-Energy sector's loss of 2.32% and the S&P 500's loss of 2.74% in that time.
SEDG will be looking to display strength as it nears its next earnings release. 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.
Investors might also notice recent changes to analyst estimates for SEDG. Recent revisions tend to reflect the latest 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. SEDG currently has a Zacks Rank of #3 (Hold).
In terms of valuation, SEDG is currently trading at a Forward P/E ratio of 22.24. Its industry sports an average Forward P/E of 23.14, so we one might conclude that SEDG is trading at a discount comparatively.
Also, we should mention that SEDG has a PEG ratio of 1.01. 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. SEDG's industry had an average PEG ratio of 1.01 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 38, putting it in the top 15% 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.
To follow SEDG in the coming trading sessions, be sure to utilize Zacks.com.