In the latest trading session, SolarEdge Technologies (SEDG - Free Report) closed at $103.61, marking a -0.39% move from the previous day. This move lagged the S&P 500's daily gain of 0.19%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.08%.
Coming into today, shares of the photovoltaic products maker had gained 13.76% in the past month. In that same time, the Oils-Energy sector gained 4.35%, while the S&P 500 gained 3.72%.
Investors will be hoping for strength from SEDG as it approaches its next earnings release. On that day, SEDG is projected to report earnings of $1.30 per share, which would represent year-over-year growth of 106.35%. Our most recent consensus estimate is calling for quarterly revenue of $415.30 million, up 57.51% from the year-ago period.
It is also important to note the recent changes to analyst estimates for SEDG. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. SEDG is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, SEDG is holding a Forward P/E ratio of 20.39. For comparison, its industry has an average Forward P/E of 20.39, which means SEDG is trading at a no noticeable deviation to the group.
Meanwhile, SEDG's PEG ratio is currently 0.93. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Solar stocks are, on average, holding a PEG ratio of 0.9 based on yesterday's closing prices.
The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 26% 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.