Big Money Shines on SolarEdge

And the maker of energy inverter systems for solar installations could soar more due to favorable climate change legislation. But another likely reason is Big Money lifting the stock.

SolarEdge Brings in Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And SolarEdge has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals SEDG has made the last year.

The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

In the last year, the stock attracted 13 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out the technical action grabbing my attention:

• 1-month outperformance vs. Technology Select Sector SPDR ETF (+23.6% vs. XLK)

Outperformance is important for leading stocks.

SolarEdge Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, SolarEdge has been growing sales well and is expected to have great future earnings. Take a look:

• 3-year sales growth rate (+29.7%)
• 2-year vs. 1-year EPS growth estimate (+73.5%)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, SEDG has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

SEDG has a lot of qualities that are attracting Big Money. It’s made the Top 20 report 44 times since 2015, with its first appearance on 01/05/2016…and gaining 1,121.2% since. The blue bars below show when SolarEdge was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the technology sector according to the MAPsignals process. I wouldn’t be surprised if SEDG makes additional appearances in the years to come. Let’s tie this all together.

SolarEdge Price Prediction

The SolarEdge rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.

Disclosure: the author holds no positions in SEDG at the time of publication.

Learn more about the MAPsignals process here.

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