SolarEdge Technologies, Inc. (SEDG - Free Report) is expected to benefit from strong financial position and expertise in module shipment. As of Sep 30, 2019, the company has shipped approximately 45.4 million power optimizers and 1.9 million inverters. Also, SolarEdge Technologies has shipped approximately 14.6 GW of DC optimized inverter systems.
Let’s focus on the factors that make SolarEdge Technologies a profitable bet for greater returns.
Zacks Rank & Earnings Surprise History
The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SolarEdge Technologies’ average four-quarter positive earnings surprise stands at 1.05%.
The stock has an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.
The company’s shares have skyrocketed 173.4% in a year’s time compared with the industry’s growth of 69.3%.
Return on Equity (ROE)
ROE is a measure of a company’s efficiency in utilizing shareholders’ funds. The company’s ROE for the trailing 12 months is 15.9%, impressive when compared to the industry’s ROE of -15.9%.
The Zacks Consensus Estimate for SolarEdge Technologies’ 2020 earnings is pegged at $5.10 per share on revenues of $1.65 billion. The bottom-line estimate suggests a 26% year-over-year increase. The same for the top line implies a 15.9% increase year on year. The company’s long-term (3 to 5 years) earnings growth is pegged at 22%.
Other Key Picks
Some other top-ranked stocks from the same sector are Bloom Energy Corporation (BE - Free Report) , TC Energy Corporation (TRP - Free Report) and TC PipeLines, LP (TCP - Free Report) . TC PipeLines sports a Zacks Rank #1 and other two stocks hold a Zacks Rank #2.
Long-term earnings growth of Bloom Energy, TC Energy and TC PipeLines is pegged at 25%, 7% and 2%, respectively.
Bloom Energy, TC Energy and TC PipeLines delivered an average positive earnings surprise of 60.12%, 5.16% and 17.37% in the last four quarters, respectively.
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