Keep an eye on SolarEdge Technologies (SEDG).
After crumbling from $371, the stock appears to have caught double bottom support dating back to November 2020. That, and RSI, MACD, and Williams’ %R are all deeply oversold.
All thanks to disappointing earnings.
While revenue came in at $405 million, beating estimates for $395 million, EPS came in at 98 cents. That missed forecasts for $1.01 a share thanks to higher company costs.
However, don’t count SEDG out just yet.
The EPS miss doesn’t change the company’s long-term fundamentals.
“The company, which supplies a key piece of technology for solar energy and has a market value of $11.3 billion, is expected to grow earnings at a 24% compounded annual rate over the next three years, according to FactSet estimates, while profit margins are expected to increase from just under 14% to over 16%,” says David Miller, portfolio manager of the Catalyst Insider Buying Fund, as reported by Barron’s.
“Plus, President Joe Biden’s infrastructure spending proposal includes tens of billions of dollars of clean energy investment. With potential solar investment from Congress, “those earnings estimates could be very conservative,” he added.
