SolarEdge Technologies (SEDG) ended the recent trading session at $30.64, demonstrating a -1% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.54%. On the other hand, the Dow registered a gain of 1.05%, and the technology-centric Nasdaq increased by 0.56%.
The stock of photovoltaic products maker has fallen by 1.31% in the past month, lagging the Oils-Energy sector's gain of 10.35% and the S&P 500's gain of 0.74%.
Analysts and investors alike will be keeping a close eye on the performance of SolarEdge Technologies in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be -$0.19, reflecting a 94.6% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $328.48 million, up 67.4% from the year-ago period.
SEDG's full-year Zacks Consensus Estimates are calling for earnings of -$2.65 per share and revenue of $1.18 billion. These results would represent year-over-year changes of +88.47% and 0%, respectively.
It is also important to note the recent changes to analyst estimates for SolarEdge Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.13% lower within the past month. SolarEdge Technologies is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that SolarEdge Technologies has a Forward P/E ratio of 272.09 right now. For comparison, its industry has an average Forward P/E of 22.48, which means SolarEdge Technologies is trading at a premium to the group.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 97, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.
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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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