Array Technologies, Inc. (ARRY) Falls More Steeply Than Broader Market: What Investors Need to Know

Array Technologies, Inc. (ARRY) closed at $6.88 in the latest trading session, marking a -6.14% move from the prior day. This change lagged the S&P 500's 0.4% loss on the day. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw a decrease of 0.73%.

The stock of company has fallen by 3.3% in the past month, lagging the Oils-Energy sector's gain of 10.64% and overreaching the S&P 500's loss of 7.34%.

Investors will be eagerly watching for the performance of Array Technologies, Inc. in its upcoming earnings disclosure. On that day, Array Technologies, Inc. is projected to report earnings of $0.01 per share, which would represent a year-over-year decline of 92.31%. Meanwhile, our latest consensus estimate is calling for revenue of $200.51 million, down 33.68% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.77 per share and a revenue of $1.47 billion, representing changes of +14.93% and +14.54%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Array Technologies, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 has moved 17.82% lower within the past month. Array Technologies, Inc. currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Array Technologies, Inc. is currently trading at a Forward P/E ratio of 9.48. This expresses a discount compared to the average Forward P/E of 17.17 of its industry.

Investors should also note that ARRY has a PEG ratio of 0.48 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Solar industry had an average PEG ratio of 0.65 as trading concluded yesterday.

The Solar industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 180, finds itself in the bottom 27% echelons 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Free Report: Profiting from the 2nd Wave of AI Explosion

The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.

Investors who bought shares like Nvidia at the right time have had a shot at huge gains.

But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.

Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.

Access AI Boom 2.0 now, absolutely free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Array Technologies, Inc. (ARRY): Free Stock Analysis Report

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

Zacks Investment Research