SolarEdge Technologies (SEDG - Free Report) closed at $83.88 in the latest trading session, marking a -1.08% move from the prior day. This change lagged the S&P 500's 0.2% loss on the day. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, lost 0.3%.
Heading into today, shares of the photovoltaic products maker had gained 2.09% over the past month, outpacing the Oils-Energy sector's loss of 2.33% and the S&P 500's loss of 0.25% in that time.
SEDG will be looking to display strength as it nears its next earnings release. On that day, SEDG is projected to report earnings of $1.19 per share, which would represent year-over-year growth of 38.37%. Our most recent consensus estimate is calling for quarterly revenue of $399.70 million, up 68.95% from the year-ago period.
SEDG's full-year Zacks Consensus Estimates are calling for earnings of $3.92 per share and revenue of $1.39 billion. These results would represent year-over-year changes of +23.66% and +48.72%, respectively.
Any recent changes to analyst estimates for SEDG should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. SEDG is currently a Zacks Rank #3 (Hold).
Looking at its valuation, SEDG is holding a Forward P/E ratio of 21.62. For comparison, its industry has an average Forward P/E of 22.6, which means SEDG is trading at a discount to the group.
Investors should also note that SEDG has a PEG ratio of 0.98 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Solar was holding an average PEG ratio of 0.98 at yesterday's closing price.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 58, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.