Solar stocks are like the weather. The outlook gets cloudy sometimes and then they shine again. SolarEdge Technologies is in the shine mode after its earnings leapt 142% last quarter on a 44% rise in sales. On Thursday the Relative Strength (RS) Rating for SolarEdge stock shot up from 66 to 79.
SolarEdge Stock Edges Near Major Benchmark
The 79 RS Rating shows that SolarEdge stock outperformed 79% of stocks in terms of price performance over the past 12 months. Additionally, the rating upgrade moves it just 1 point shy of the key 80 RS benchmark rating. Market research shows that stocks that go on to make the biggest gains typically have an RS Rating above 80 in the early stages of their moves.
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Among its other ratings, SolarEdge stock has an excellent 97 Earnings Per Share Rating, out of 99. It has an A SMR Rating (sales + profit margins + return on equity) on an A-to-E scale with A outstanding and E dismal. Additionally, it boasts a 93 Composite Rating and its C+ Accumulation/Distribution Rating, on an A+ to E scale, shows that corporate investors are buying more shares than selling.
SolarEdge stock is building a consolidation pattern with a 345.90 buy point. It rose from a 190.06 intraday low in mid-October to close at 296.06 Thursday, up fractionally for the day, bucking the down day for the market.
The company recorded 142% earnings growth to $2.90 per share in its most recent report, as sales grew 44% to $943.9 million. The prior quarter its EPS jumped 160% on a 61% pop in revenue.
No. 3 Rank In Solar Group
SolarEdge stock earns the No. 3 rank among its peers in the Energy-Solar industry group. Shoals Technologies and Array Technologies are also among the group's highest-rated stocks.
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 identifies market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the last 52 weeks compares to all the other stocks in our database.
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