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

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SolarEdge Technologies (SEDG - Free Report) closed at $280.40 in the latest trading session, marking a -0.95% move from the prior day. This move lagged the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 0.14%.

Heading into today, shares of the photovoltaic products maker had gained 14.05% over the past month, outpacing the Oils-Energy sector's loss of 4.13% and the S&P 500's loss of 3.32% in that time.

SolarEdge Technologies will be looking to display strength as it nears its next earnings release. In that report, analysts expect SolarEdge Technologies to post earnings of $1.40 per share. This would mark year-over-year growth of 9.38%. Our most recent consensus estimate is calling for quarterly revenue of $726.28 million, up 51.29% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.91 per share and revenue of $3.02 billion. These totals would mark changes of +43.66% and +54%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for SolarEdge Technologies. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.25% higher. SolarEdge Technologies is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, SolarEdge Technologies is currently trading at a Forward P/E ratio of 40.98. This represents a premium compared to its industry's average Forward P/E of 39.96.

Meanwhile, SEDG's PEG ratio is currently 1.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SEDG's industry had an average PEG ratio of 8.53 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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