In the latest trading session, SolarEdge Technologies (SEDG - Free Report) closed at $103.94, marking a -0.51% move from the previous day. This change lagged the S&P 500's 0.33% gain on the day. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.67%.
Prior to today's trading, shares of the photovoltaic products maker had gained 0.3% over the past month. This has outpaced the Oils-Energy sector's loss of 8.55% and lagged the S&P 500's gain of 3.24% in that time.
Wall Street will be looking for positivity from SEDG as it approaches its next earnings report date. This is expected to be February 19, 2020. In that report, analysts expect SEDG to post earnings of $1.30 per share. This would mark year-over-year growth of 106.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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 revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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 is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, SEDG currently has a Forward P/E ratio of 20.47. Its industry sports an average Forward P/E of 20.47, so we one might conclude that SEDG is trading at a no noticeable deviation comparatively.
Also, we should mention that SEDG has a PEG ratio of 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 0.92 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 167, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.