Why Array Technologies, Inc. (ARRY) Outpaced the Stock Market Today
In the latest close session, Array Technologies, Inc. (ARRY) was up +1.89% at $6.46. This change outpaced the S&P 500’s 0.81% gain on the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 1.3%.
Coming into today, shares of the company had lost 7.24% in the past month. In that same time, the Oils-Energy sector lost 3.61%, while the S&P 500 gained 1.13%.
The investment community will be closely monitoring the performance of Array Technologies, Inc. in its forthcoming earnings report. The company is expected to report EPS of $0.1, down 60% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $323.84 million, indicating a 10.6% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $0.72 per share and a revenue of $1.45 billion, demonstrating changes of +7.46% and +13.02%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Array Technologies, Inc. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.95% upward. As of now, Array Technologies, Inc. holds a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Array Technologies, Inc. currently has a Forward P/E ratio of 8.79. This expresses a discount compared to the average Forward P/E of 20.26 of its industry.
Meanwhile, ARRY’s PEG ratio is currently 0.76. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. As the market closed yesterday, the Solar industry was having an average PEG ratio of 0.89.
The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 60, positioning it in the top 25% of all 250+ industries.
