Today's Perilous Reversal Stock: SolarEdge Technologies (SEDG)
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified SolarEdge Technologies as such a stock due to the following factors:
- SEDG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $49.0 million.
- SEDG has traded 95,088 shares today.
- SEDG is down 3.1% today.
- SEDG was up 7.3% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SEDG with the Ticky from Trade-Ideas. See the FREE profile for SEDG NOW at Trade-Ideas
More details on SEDG:
SolarEdge Technologies, Inc. designs, develops, manufactures, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations in Israel, Europe, the United States, and internationally. SEDG has a PE ratio of 12. Currently there are 7 analysts that rate SolarEdge Technologies a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for SolarEdge Technologies has been 1.2 million shares per day over the past 30 days. SolarEdge has a market cap of $752.3 million and is part of the technology sector and electronics industry. Shares are down 29.6% year-to-date as of the close of trading on Wednesday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates SolarEdge Technologies as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
Highlights from the ratings report include:
- When compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, SOLAREDGE TECHNOLOGIES INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- The revenue growth greatly exceeded the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 44.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SEDG has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, SEDG has a quick ratio of 2.27, which demonstrates the ability of the company to cover short-term liquidity needs.
- SEDG's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 47.63%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter.
- The gross profit margin for SOLAREDGE TECHNOLOGIES INC is currently lower than what is desirable, coming in at 33.33%. Regardless of SEDG's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 16.61% trails the industry average.
- You can view the full SolarEdge Technologies Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
