Solar energy gear maker SolarEdge Technologies isn't all that big, but what it lacks so far in size it makes up for in leaping sales growth. And on Tuesday, the Relative Strength Rating for SolarEdge stock rose to 71, up from 63 a day earlier.
SolarEdge Stock Needs A Bit More Work
The new 71 RS Rating establishes that SolarEdge stock is performing in the top 29% of all stocks. It's a welcome improvement for this watchlist candidate, but it needs a bit more work to really shine. Market research shows that the best stocks typically have an RS Rating over 80 in the early stages of their moves. See if SolarEdge Technologies can continue to show renewed price strength and hit that benchmark.
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Included among its other ratings is an 82 Composite Rating, an amalgam of IBD's top five other ratings. Its 91 EPS Rating, which is among those in the Composite, puts SolarEdge in the top 9% of all stocks, regardless of industry, in terms of recent quarters and long-term profit growth.
In terms of fundamentals, earnings growth for the Israel-based company accelerated last quarter to 22%, or $1.20 per share, up from 12% growth in the prior report. Revenue growth also increased, from 54% to a whopping 62% year-over-year jump to $655.1 million. The prior three quarters its revenue grew 45%, 56% and then 54%.
SolarEdge stock formed a cup pattern from last November until March but could not break out in the midst of the bear market. The market recently returned to growth but now is not an ideal time for SolarEdge to jump in because it isn't near a proper buy zone. If the young bull market continues, see if SolarEdge stock goes on to form a consolidation and break out.
SolarEdge stock earns the No. 4 rank among its peers in the Energy-Solar industry group. Enphase Energy is No. 1, Jinko Solar is No. 2. Daqo New Energy is No. 3.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique Relative Strength Rating measures market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the last 52 weeks holds up against all the other stocks in our database.
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