SolarEdge (SEDG) Moves 13.1% Higher: Will This Strength Last?

SolarEdge Technologies (SEDG) shares ended the last trading session 13.1% higher at $35.04. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.6% gain over the past four weeks.

SolarEdge benefits from its optimized inverter solutions that address a broad range of solar market segments, from residential solar installations to commercial and small utility-scale solar installations.

SolarEdge is actively expanding its presence in Europe to capitalize on the region’s growing renewable energy market. The company is strengthening its footprint through strategic partnerships and new product offerings that support energy management, electric mobility, and integrated solar solutions. These initiatives enhance SolarEdge’s market reach and improve adoption of its energy ecosystem. 

This photovoltaic products maker is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents a year-over-year change of +94.6%. Revenues are expected to be $328.48 million, up 67.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For SolarEdge, the consensus EPS estimate for the quarter has been revised 10.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SEDG going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

SolarEdge belongs to the Zacks Solar industry. Another stock from the same industry, Canadian Solar (CSIQ), closed the last trading session 3.2% higher at $20.68. Over the past month, CSIQ has returned -14.7%.

For Canadian Solar, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$1.1. This represents a change of +25.2% from what the company reported a year ago. Canadian Solar currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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