SEDG Eyes $30–36 Trading Range Amid Solar Margin Concerns
$SolarEdge(SEDG)$
$31.82 (−3.2%): Earnings jitters drag solar rebound laggard back into $30–35 stress zone
Market Recap :
SolarEdge (SEDG) slipped −3.2% to $31.82, with volume (~4.1M) roughly in line with its recent average.
The stock remains up about +59% YTD, but now trades ~24% below its 52-week high near $41.92 and still well above the $10.24 low, reflecting a volatile recovery phase in solar hardware.
With earnings due Nov 5, positioning is cautious after a year of downgrades and margin worries across the solar group.
Technical Indicators Analysis & 1-Week View:
Today’s drop pushes price back under the 20- and 50-day EMAs (~$36.3 / $34.8), confirming a short-term downtrend with moving-average resistance stacked overhead.
MACD sits below zero but the histogram is curling up, hinting at waning downside momentum; RSI around 38–39 is approaching oversold but not yet capitulative.
Volume is elevated but not climactic, suggesting controlled selling rather than panic.
Combining volume+MACD+RSI, base-building attempts are possible if $30 holds; volume+EMA (and likely SAR sell-signal) still argue “downtrend with bounce risk” rather than a clean reversal.
For the coming week, expect a volatile earnings-driven range: support $28, resistance $36.5. A strong report that re-anchors margin guidance could squeeze price back toward the mid-$30s; a disappointment risks a quick flush toward the high-$20s.
Valuation & Target Range:
On fundamentals, SEDG is currently loss-making with TTM EPS ≈ −$30.4 and no meaningful P/E, versus an S&P 500 TTM P/E around 28–31x, so traditional P/E comparisons are not useful.
Historically the stock often traded at mid-double-digit P/E multiples when profitable, but today investors focus more on balance-sheet strength and revenue traction than earnings multiples.
Peer and valuation sites imply an effective negative or N/A P/E, with price-to-sales around 2.0–2.2x, a discount to the broader semiconductor/solar peer group but still above some “fair value” models.
Street consensus 12-month target sits near $27.4, slightly below the current price, underlining cautious sentiment. My short-term technical bias: base case $30–36 trading range over the next 1–3 weeks;
bullish scenario on a strong earnings surprise is a retest of $38–40; bearish scenario on weak numbers sees $26–28 quickly.
Risk Statement:
Leveraged exposure to cyclical solar demand, policy changes, and execution on turnaround plans make SEDG highly volatile; earnings on Nov 5 are a key binary catalyst. This note is for technical and educational reference only and does not constitute investment advice or a recommendation to buy or sell any security.
Data Source: TradingView & Yahoo Finance (daily chart and quote, Nov 4, 2025).
For SG users only, a tool to boost your purchasing power and trading ideas with a Cash Boost Account!
Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with upcoming 0-commission, unlimited trading on SG, HK, and US stocks, as well as ETFs. Find out more here.
Other helpful links:
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
