Strength Seen in SolarEdge (SEDG): Can Its 13.3% Jump Turn into More Strength?

SolarEdge Technologies (SEDG) shares soared 13.3% in the last trading session to close at $51.73. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 30.6% gain over the past four weeks.

SolarEdge Technologies 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 Technologies has launched its Nexis residential solar and storage system in Germany, featuring an ultra-efficient inverter of up to 20 kW and a scalable battery solution that can expand up to 78.4 kWh. The system is designed to significantly reduce installation and commissioning time for installers, while offering homeowners a flexible and accessible entry into energy storage with the ability to scale capacity as their energy needs grow.

This photovoltaic products maker is expected to post quarterly loss of $0.24 per share in its upcoming report, which represents a year-over-year change of +79%. Revenues are expected to be $303.61 million, up 38.3% 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 6.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates 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 is a member of the Zacks Solar industry. One other stock in the same industry, Shoals Technologies Group (SHLS), finished the last trading session 1% higher at $6.1. SHLS has returned -40.7% over the past month.

For Shoals Technologies, the consensus EPS estimate for the upcoming report has changed -21.1% over the past month to $0.06. This represents a change of +100% from what the company reported a year ago. Shoals Technologies currently has a Zacks Rank of #3 (Hold).

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

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

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