Solaredge Outlook - A Bullish Technical Profile Amid Mixed Analyst Sentiment

Market Snapshot

Headline Takeaway: Solaredge (SEDG) presents a cautiously optimistic technical outlook, with strong internal diagnostic scores of 7.15, suggesting a bullish bias despite recent price declines of -0.30%.

News Highlights

• Japan-U.S. Semiconductor Collaboration: Japan plans to propose greater cooperation with the U.S. on rare earths and semiconductors, potentially helping to counter China's influence. This could indirectly benefit Solaredge, as the global supply chain reshapes.
• McKinsey on US Tariffs: New analysis from McKinsey explores the potential impact of U.S. tariffs on semiconductors, highlighting ongoing uncertainty. This could create volatility in the sector but may also lead to policy-driven opportunities for companies like Solaredge in the long term.
• $750M ETF Outflow: The US Semiconductors ETF (SOXX) faced a $750M net outflow in May 2025. While this suggests short-term pessimism, Solaredge's strong technical indicators may help it outperform in the coming months.

Analyst Views & Fundamentals

Analysts remain divided on Solaredge, with a simple average rating of 2.00 and a performance-weighted rating of 0.94. This significant divergence reflects the mixed signals coming from both Guggenheim and Goldman Sachs. Guggenheim has a 50% historical win rate, while Goldman Sachs has a weaker 20% win rate, suggesting caution about following the latter's "Underperform" call.

The recent price trend of -0.30% is in line with the market's pessimistic expectations, which could mean the stock is consolidating before the next move. Key fundamental factors include:

• Net cash flow from operating activities per share (YoY growth rate): 109.57% (internal score 3.00)
• Net profit attributable to parent company shareholders / Net profit: 100.00% (internal score 1.00)
• EV/EBIT: -9.68 (internal score 2.00)
• Accounts receivable turnover ratio: 269.61 (internal score 2.00)
• Total profit (YoY growth rate): 34.63% (internal score 0.00)
• Net cash flow from operating activities (YoY growth rate): 109.94% (internal score 2.00)
• Interest coverage ratio (EBIT / Interest expense): -89.61% (internal score 1.00)
• Diluted earnings per share (YoY growth rate): 24.31% (internal score 3.00)
• Net profit attributable to parent company shareholders (YoY growth rate): 22.51% (internal score 3.00)
• Cash-MV: 5.40% (internal score 2.00)

Money-Flow Trends

Solaredge is currently seeing strong inflows across all investor segments, with an overall inflow ratio of 50.19% and a positive trend in all categories, including retail (Small_trend), institutional (block_trend), and large-cap flows. The inflow ratio across small, medium, and large investors is above 50%, indicating broad-based buying interest. This positive flow pattern supports the technical outlook and suggests accumulation by both retail and institutional investors.

Key Technical Signals

Solaredge's technical indicators point to a cautiously optimistic trend with a strong internal diagnostic score of 7.15, reflecting a bullish bias. Here's a breakdown of key signals:

• Long Upper Shadow: Internal diagnostic score of 7.67, indicating strong bullish momentum and a high win rate of 61.11% historically.
• Long Lower Shadow: Internal diagnostic score of 7.46, with a bullish bias and a 59.7% win rate.
• WR Oversold: Internal diagnostic score of 7.43, signaling a potential bounce after being oversold with a 59.52% win rate.
• MACD Death Cross: Internal diagnostic score of 6.05, showing a neutral rise with a 54.55% win rate.

Recent chart patterns from September 8 to 12, 2025 include multiple Long Upper and Lower Shadows, with WR Oversold signals appearing frequently. These suggest a volatile but potentially bullish setup, where the market is testing key support and resistance levels before making a decisive move.

The technical analysis key insights emphasize that the market is in a volatile state with no clear direction yet, but the bullish signals (3 vs 0 bearish) dominate. Investors should monitor these patterns for confirmation of a potential breakout or reversal.

Conclusion

With strong technical signals, positive money flows, and solid operating cash flow growth, Solaredge is showing signs of a potential rebound. The internal diagnostic score of 7.15 and the inflow ratio of 50.19% support a cautious bullish stance. While analysts remain divided, the stock's technical and fundamental profile appears favorable. An actionable takeaway: Investors may consider entering on a pullback, with key technical indicators acting as confirmation tools. Watch for a potential breakout above key resistance levels in the coming weeks.