Array Technologies: Is it Time to Buy the Dip?

Array Technologies (ARRY) has declined 24.3% in 4 weeks but is now oversold with an RSI reading of 27.91, indicating a potential trend reversal. There is also strong agreement among analysts to raise earnings estimates for the current year, which has led to a Zacks Rank #2 (Buy). This suggests that the stock could rebound soon.

Array Technologies Inc. (ARRY) has seen a significant decline in its stock price over the past four weeks, with a 24.3% drop. However, recent technical indicators suggest a potential reversal in the trend. The Relative Strength Index (RSI) reading of 27.91 indicates that the stock is oversold, which often signals a buying opportunity. Additionally, there is strong consensus among analysts to raise earnings estimates for the current year, as reflected by the Zacks Rank #2 (Buy) rating.

In the first quarter of 2025, ARRY reported strong earnings, surpassing market expectations. Revenue surged by 97% year-over-year (YoY), and net income turned positive at $2.3M, up from a loss of $11.3M in the previous year. The company's gross margin improved to 26.5%, demonstrating its operational efficiency [1].

Despite the recent decline, ARRY maintains a robust order book of $2B, which underscores the company's market demand. The solar tracking technology market remains dynamic, with fierce competition and policy headwinds. However, ARRY's strong product portfolio and strategic positioning in the renewable energy sector provide a solid foundation for future growth.

Analysts project a return to growth for ARRY in 2025, with revenue forecasts of 20% and improving gross margins. The company's ability to leverage strong bookings and rising steel prices could drive its growth trajectory. Meanwhile, competitive positioning strategies, such as expanding product offerings and increasing research and development (R&D) investments, will be crucial for maintaining market share.

In conclusion, while ARRY's stock has faced recent challenges, the combination of technical indicators, analyst sentiment, and strong earnings reports suggest that the stock could rebound soon. Investors should closely monitor ARRY's performance and consider the company's strategic positioning in the solar tracking sector.

References:
[1] https://www.investing.com/equities/array-technologies-inc