Back to top

Image: Bigstock

SolarEdge Technologies (SEDG) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

SolarEdge Technologies (SEDG - Free Report) closed at $91.11 in the latest trading session, marking a +0.43% move from the prior day. This change lagged the S&P 500's 9.28% gain on the day. Meanwhile, the Dow gained 9.36%, and the Nasdaq, a tech-heavy index, added 9.34%.

Coming into today, shares of the photovoltaic products maker had lost 18.39% in the past month. In that same time, the Oils-Energy sector lost 44.89%, while the S&P 500 lost 26.56%.

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 $1.28 per share, which would represent year-over-year growth of 100%. Meanwhile, our latest consensus estimate is calling for revenue of $431.19 million, up 58.6% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.64 per share and revenue of $1.88 billion. These totals would mark changes of +27.03% and +31.96%, respectively, from last year.

Any recent changes to analyst estimates for SEDG should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 15.63% higher. SEDG is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, SEDG is currently trading at a Forward P/E ratio of 16.09. For comparison, its industry has an average Forward P/E of 14.05, which means SEDG is trading at a premium to the group.

Meanwhile, SEDG's PEG ratio is currently 0.64. 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 industry currently had an average PEG ratio of 0.64 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


SolarEdge Technologies, Inc. (SEDG) - free report >>

Published in