S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20

SolarEdge Technologies Stock is a Secular Solar Tailwinds Benefactor

Wednesday, May 26, 2021 | Jea Yu
SolarEdge Technologies Stock is a Secular Solar Tailwinds Benefactor  Solar energy inverter systems solutions provider SolarEdge Technologies (NASDAQ: SEDG) stock had a volatile 2021 as shares fell (-30%) off its $377 highs made in January 2021. The Company makes smart inverters for photovoltaic (PV) systems for residential and commercial buildings, electric vehicle (EV) charging complete with a mobile smart app to monitor every aspect in real-time. Their smart energy solutions maximize power generation while lowering the cost to produce energy. As the leading global maker of PV inverters, the Company has shipped over 24 Gigawatts of systems worldwide from over 2 million monitored systems in over 133 countries. SolarEdge is a benefactor of the global decarbonization movement and the Biden Administration’s clean energy initiatives including the extension of the Federal solar investment tax credit (ITC) rate of 26% through 2023. Risk tolerant investors seeking exposure in the clean and renewable energy space can monitor shares for opportunistic pullbacks.        

Q1 2021 Earnings Release

On May 3, 2021, SolarEdge released Q1 2021 results for the quarter ending in March 2021. The Company reported earnings per share (EPS) of $0.98 excluding non-recurring items, versus consensus analyst estimates for a profit of $1.02, a (-$0.04) miss. Revenues rose 6% year-over-year (YoY) to $405.5 million, beating analyst estimates for $395.73 million. Solar products revenues were $376.4 million, up 15% YoY. The Company shipped out 1.69 Gigawatts of AC inverters. The Company had $1.2 billion in liquidity at the end of the Q.

Q2 2021 Raised Revenue Guidance

SolarEdge bumped up guidance for Q2 2021 with revenues expected to come in between $445 million to $465 million versus $446.37 million. Revenues from solar products are expected to come in between $405 million to $420 million.

Conference Call Takeaways

SolarEdge CEO, Zvi Lando, set the tone, “This quarter, we shipped out 3.7 million power optimizers and 182,000 inverters. Our Solar business grew this quarter across all segments and geographies, including record quarterly revenues in Australia, Italy, and France. In North America, we saw a 23% growth in revenues from Q4 to Q1, representing increased demand for both residential and commercial products.” The Company saw 50% sequential quarterly growth in Australia with nearly 100 megawatts of products delivered. He continued, “When it comes to new market opportunities, we see Korea as a particularly interesting one. We recently completed certification of our three-phase commercial inverter for installation on commercial rooftops in Korea. As the C&I market in Korea is more than 2 Gigawatt in size and considering our strong local presence, we are optimistic of the growth potential there.” SolarEdge already installed more than 10 megawatts of rooftops in a conditional certification set-up.

CEO Lando expects to see “meaningful” signs of recovery in all commercial geographies as megawatts shipments grew 35% sequentially. The Company expects commercial segments to grow back to pre-pandemic levels in the second-half of 2021. The Company is also on track to start shipping out initial shipments of the residential batteries this quarter. This come after completing testing through active U.S. sites to validate in-field battery performance and sharpen installation practices. The Company should start to see meaningful revenues from Q3 2021 forward.

Non-Solar Business

Non-solar revenues were $29.1 million for the quarter. The Company’s e-Mobility Division began delivering full powertrain units and batteries for the Fiat E-Ducato this quarter. The Sella 2 factory for lithium-ion cells and batteries in Korea is expected to start pilot production in H1 2022. This will enable the Company to supply its own cells to reduce dependency on third-party manufacturers.

SolarEdge Technologies Stock is a Secular Solar Tailwinds Benefactor

SEDG Opportunistic Pullback Levels  

Using the rifle charts on weekly and daily time frames provides a broader view of the landscape for SEDG stock. Keep in mind, this is an expensive stock, so the slippage is common. The weekly uptrend peaked near the $375.24 Fibonacci (fib) level. Shares have been in down trending since the weekly market structure high (MSH) triggered on the breakdown under $281.83. The falling weekly 5 period moving average (MA) is at $249.91 with lower weekly Bollinger Bands (BBs) at $193.35. The weekly stochastic is attempting to bottom out and cross back up off the 20-band. The weekly market structure low (MSL) buy triggers above $262.82. The daily rifle chart is uptrending with a rising 5-period MA at $235.01 powered by the bullish stochastic mini pup with upper BBs at $312.53. Risk-tolerant investors can monitor for opportunistic pullback levels at the $236.98 fib, $232.66 fib, $222.38 fib, $207.68 fib, $201.61 fib, $195.60 fib, and the $189.66 fib. The upside trajectories range from the $284.71 fib up towards the $350.01 fib level. Keep an eye on peer solar stocks FSLR, SPWR and SUN as they tend to move as a group.

Should you invest $1,000 in SolarEdge Technologies right now?

Before you consider SolarEdge Technologies, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and SolarEdge Technologies wasn't on the list.

While SolarEdge Technologies currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
SolarEdge Technologies (SEDG)2.3$341.44-2.0%N/A128.36Buy$357.39
Compare These Stocks  Add These Stocks to My Watchlist 

Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:

Most Read This Week

Recent Articles

Search Headlines:
MarketBeat Minute Podcast

Each market day you'll get a one-minute market summary to help you invest wisely.

Subscribe to MarketBeat Minute


Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.