Solar energy companies have cooled off from the frantic growth pace they had a couple of years ago. There are still gems to be found among them though. No. 1 ranked in the group is SolarEdge Technologies. SolarEdge stock cleared a key benchmark Tuesday, as its Relative Strength Rating jumped nearly 20 points from 64 to 83, according to MarketSmith.
SolarEdge Stock Moves To Head Of Class
The raised 83 Relative Strength Rating means SolarEdge stock is among the top 17% of all stocks for price performance this past year. Additionally, the upgrade puts it in an elite group of stocks. Market research shows that the best stocks to buy and watch, stocks that go on to make the biggest gains, tend to have an RS Rating of above 80 in the early stages of their moves. Watchlist candidate SolarEdge just climbed up into that group.
Among its other key ratings SolarEdge stock boasts a near-perfect 97 Composite Rating, out of 99. Its 87 Earnings Per Share Rating puts it in the top 13% of companies for recent and long-term profit growth. It also has an outstanding A- Accumulation/Distribution Rating on an A+ to E scale. Likewise, its SMR Rating (sales + profit margins + return on equity) is a bullish A.
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SolarEdge stock advanced Tuesday afternoon to above 318. It recently formed a long cup-with-handle base but hasn't broken out yet. While the stock is not near a proper buy zone right now, see if it is able to form and break out from a proper chart pattern.
Sales Growth Averages In Mid-50% Range
The company saw both earnings and sales growth rise last quarter. Earnings per share soared 160% to $2.86. Revenue rose 61%, up from 59% the prior quarter, to $890.7 million. EPS growth has been a bit erratic with EPS up in two of the last four quarters and down in the other two. However, sales have zoomed higher during that time, ranging from 52% to 62% growth every quarter during that time.
SolarEdge stock holds the No. 1 rank among its peers in the Energy-Solar industry group. Canadian Solar, which makes solar cells and other solar energy products, is No. 2. Array Technologies, which makes devices that turn solar panel arrays to always be facing the sun during the day, is No. 3.
IBD's proprietary Relative Strength Rating measures market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the last 52 weeks stacks up against all the other stocks in our database.
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