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

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SolarEdge Technologies (SEDG - Free Report) closed at $108.73 in the latest trading session, marking a +0.25% move from the prior day. This move outpaced the S&P 500's daily gain of 0.11%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 0.2%.

Coming into today, shares of the photovoltaic products maker had gained 13.93% in the past month. In that same time, the Oils-Energy sector lost 2.03%, while the S&P 500 gained 3.25%.

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%. Meanwhile, our latest consensus estimate is calling for revenue of $415.30 million, up 57.51% from the prior-year quarter.

Any recent changes to analyst estimates for SEDG should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SEDG is currently a Zacks Rank #3 (Hold).

Investors should also note SEDG's current valuation metrics, including its Forward P/E ratio of 21.26. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 21.26.

It is also worth noting that SEDG currently has a PEG ratio of 0.97. 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 0.86 based on yesterday's closing prices.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 17% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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