SolarEdge Technologies (SEDG) is a Leading Momentum Stock: Is It Worth Investing In?

Unlocking Stock Market Potential with Zacks Premium

Whether you’re just starting out or have years of investing experience, making the most of the stock market and investing with assurance are universal ambitions. Zacks Premium offers a variety of resources to help you reach these goals.

Subscribers receive daily updates on the Zacks Rank and Zacks Industry Rank, full access to the exclusive Zacks #1 Rank List, comprehensive equity research reports, and advanced stock screening tools. These features are designed to empower you to make smarter, more confident investment decisions.

Additionally, Zacks Premium members benefit from the Zacks Style Scores system.

Understanding Zacks Style Scores

The Zacks Style Scores, developed to complement the Zacks Rank, are a set of indicators that assist investors in identifying stocks with the highest likelihood of outperforming the market over the next month.

Each stock receives a grade from A to F, reflecting its value, growth, and momentum attributes. An A rating signals the strongest potential, while F indicates the weakest—mirroring academic grading. Higher scores suggest a greater chance for the stock to excel.

There are four main Style Score categories:

Value Score

Value investors seek quality stocks trading below their intrinsic worth before the broader market recognizes their potential. The Value Score leverages ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, among others, to pinpoint undervalued opportunities.

Growth Score

Growth-focused investors prioritize a company’s future outlook and financial robustness. The Growth Score evaluates factors like projected and historical earnings, sales, and cash flow to identify businesses poised for sustainable expansion.

Momentum Score

Momentum investors aim to capitalize on prevailing trends in stock prices or earnings forecasts. The Momentum Score considers metrics like one-week price movement and monthly changes in earnings estimates to help spot optimal entry points for high-momentum stocks.

VGM Score

For those seeking a blend of value, growth, and momentum, the VGM Score combines all three Style Scores into a single rating. This composite score helps investors find stocks with the most attractive overall profiles and works especially well alongside the Zacks Rank.

How Style Scores Enhance the Zacks Rank

The Zacks Rank is a proprietary system that uses changes in earnings estimates to help investors build winning portfolios. Since 1988, stocks rated #1 (Strong Buy) have delivered an average annual return of +23.86%, more than double the S&P 500’s performance over the same period. However, with over 200 stocks often holding a Strong Buy rating and another 600 with a #2 (Buy) rating, narrowing down your choices can be daunting.

This is where Style Scores prove invaluable.

To optimize your investment returns, focus on stocks with a Zacks Rank of #1 or #2 and Style Scores of A or B. If you’re considering stocks with a #3 (Hold) rating, prioritize those with high Style Scores to maximize potential gains.

Always consider the direction of earnings estimate revisions, as Style Scores are designed to work in tandem with the Zacks Rank. For example, even if a stock with a #4 (Sell) or #5 (Strong Sell) rating has high Style Scores, a negative earnings outlook increases the risk of price declines.

Owning more stocks with top Zacks Ranks and high Style Scores can significantly improve your portfolio’s prospects.

Featured Stock: SolarEdge Technologies (SEDG)

Headquartered in Herzliya Pituach, Israel, SolarEdge Technologies was founded in 2006 and is recognized for its advanced inverter solutions, which include inverters, power optimizers, and communication devices for cloud-based monitoring, as well as smart energy management systems. The company’s core offerings also feature energy storage solutions. SolarEdge operates in multiple countries, including China, Vietnam, India, Mexico, Australia, Israel, Europe, Korea, and the United States.

Currently, SEDG holds a #3 (Hold) Zacks Rank and boasts an A-rated VGM Score.

Momentum investors should pay attention to this Oils-Energy sector stock. SEDG has achieved an A in the Momentum Style Score, with its shares climbing 23.7% over the past month.

In the last 60 days, two analysts have raised their earnings projections for fiscal 2026, and the Zacks Consensus Estimate has increased from $0.00 to $0.17 per share. The company also has an average earnings surprise of +12.7%.

With a strong Zacks Rank and outstanding Momentum and VGM Scores, SEDG is a stock worth considering for your watchlist.

Top Analyst’s “Best Pick to Double”

Out of thousands of stocks, five Zacks experts have each selected their top candidate to potentially double in value in the coming months. From these, Director of Research Sheraz Mian has chosen the one with the highest upside potential.

This company, which targets millennial and Gen Z consumers, generated nearly $1 billion in revenue last quarter. A recent dip in its share price presents a compelling entry point. While not every top pick is a guaranteed winner, this selection could outperform previous Zacks recommendations like Nano-X Imaging, which soared 129.6% in just over nine months.