In the latest trading session, SolarEdge Technologies (SEDG) closed at $34.31, marking a -2.82% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.19% for the day. On the other hand, the Dow registered a loss of 0.8%, and the technology-centric Nasdaq decreased by 0.1%.
Coming into today, shares of the photovoltaic products maker had gained 23.7% in the past month. In that same time, the Oils-Energy sector gained 0.24%, while the S&P 500 gained 2.26%.
Analysts and investors alike will be keeping a close eye on the performance of SolarEdge Technologies in its upcoming earnings disclosure. On that day, SolarEdge Technologies is projected to report earnings of -$0.19 per share, which would represent year-over-year growth of 94.6%. In the meantime, our current consensus estimate forecasts the revenue to be $327.39 million, indicating a 66.85% growth compared to the corresponding quarter of the prior year.
SEDG's full-year Zacks Consensus Estimates are calling for earnings of -$2.66 per share and revenue of $1.18 billion. These results would represent year-over-year changes of +88.43% and 0%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SolarEdge Technologies. 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 business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 8.29% lower. As of now, SolarEdge Technologies holds a Zacks Rank of #3 (Hold).
Investors should also note SolarEdge Technologies's current valuation metrics, including its Forward P/E ratio of 724.21. Its industry sports an average Forward P/E of 21.21, so one might conclude that SolarEdge Technologies is trading at a premium comparatively.
The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 26, placing it within the top 11% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
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SolarEdge Technologies, Inc. (SEDG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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