In the latest trading session, SolarEdge Technologies (SEDG - Free Report) closed at $90.45, marking a +0.61% move from the previous day. The stock lagged the S&P 500's daily gain of 6.24%. At the same time, the Dow added 6.38%, and the tech-heavy Nasdaq gained 5.6%.
Prior to today's trading, shares of the photovoltaic products maker had lost 32.11% over the past month. This has was narrower than the Oils-Energy sector's loss of 35.98% and lagged the S&P 500's loss of 21.22% in that time.
SEDG will be looking to display strength as it nears 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.64 per share and revenue of $1.88 billion, which would represent changes of +27.03% and +31.96%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for SEDG. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. SEDG is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, SEDG is currently trading at a Forward P/E ratio of 15.95. Its industry sports an average Forward P/E of 14.79, so we one might conclude that SEDG is trading at a premium comparatively.
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. Solar stocks are, on average, holding a PEG ratio of 0.64 based on yesterday's closing prices.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.