SolarEdge Technologies (SEDG) Dips More Than Broader Market: What You Should Know

SolarEdge Technologies (SEDG) ended the recent trading session at $36.09, demonstrating a -5.3% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.08%. Meanwhile, the Dow experienced a drop of 0.61%, and the technology-dominated Nasdaq saw an increase of 0.08%.

The stock of photovoltaic products maker has risen by 3.59% in the past month, lagging the Oils-Energy sector's gain of 5.48% and overreaching the S&P 500's loss of 2.16%.

Market participants will be closely following the financial results of SolarEdge Technologies in its upcoming release. The company's earnings per share (EPS) are projected to be -$0.25, reflecting a 78.07% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $302.54 million, up 37.84% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.28 per share and revenue of $1.39 billion. These totals would mark changes of +111.76% and +17.49%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SolarEdge Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 23.81% higher within the past month. SolarEdge Technologies is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, SolarEdge Technologies is at present trading with a Forward P/E ratio of 137.58. This valuation marks a premium compared to its industry average Forward P/E of 17.96.

The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 161, placing it within the bottom 35% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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SolarEdge Technologies, Inc. (SEDG): Free Stock Analysis Report

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

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