Give Your ESG Portfolio an Edge with SolarEdge Technologies
Israel-based SolarEdge Technologies (NASDAQ:SEDG) might be considered a secret pick among U.S.-based investors. For some folks seeking more exposure to businesses immersed in ESG (environmental, social and governance) issues, SEDG stock may be worth considering.
With SolarEdge, you’re basically getting multiple eco-friendly technologies in one company. Truly, SolarEdge is seeking to transform the modern market for smart energy technology.
Now, the skeptics might look at SEDG stock and think that it’s too pricey at $300+. However, as the old saying goes, if you want quality, you have to be willing to pay for it.
As you learn more about the company, you’ll find that SolarEdge Technologies is both focused and diversified in the ESG tech space. Furthermore, you’ll discover that SolarEdge is a robust revenue generator — so just maybe, the shares aren’t so pricey, after all.
SEDG Stock at a Glance
Are you seeking shelter from the “tech wreck” of early 2022? If so, then perhaps you ought to consider an investment in SolarEdge Technologies.
While some other stocks were faltering, SEDG stock held firm. In fact, the stock’s value increased from $209 on Jan. 27, to $294 on March 14.
That’s a 50%+ gain, during a time when Wall Street was nervous about geopolitical turmoil. It just goes to show that there are comparatively safe havens available in the market, if you know where to find them.
Besides, the rally in SEDG stock might be far from over. The stock has a 52-week high of $389.71, so there ought to be more room to run.
After that, $400 will be an obvious target for a breakout. So, a simple strategy would be to take a starter position in SolarEdge Technologies shares, especially if the price is anywhere near $300 when you read this.
One Company, Multiple Technologies
Some businesses might brag about being innovators. Talk is cheap — but SolarEdge Technologies stands apart because the company actually deserves to be called an innovator.
As the company explains, SolarEdge “invented an intelligent inverter solution that has changed the way power is harvested and managed in a solar photovoltaic (PV) systems.”
Moreover, the company developed the first two-in-one electric vehicle charger and solar converter.
This is a single device that functions as both an electric vehicle charger and a photovoltaic (PV) converter, so it “eliminates the need for additional wiring, conduit and a breaker installation.”
Plus, the company offers homeowners the cutting-edge SolarEdge Energy Bank. This efficient storage platform maximizes the use of solar energy year-round, even during outages.
This isn’t even a complete description of SolarEdge’s product and service lineup. Still, this leads us to the billion-dollar question: has SolarEdge been able to effectively monetize its breakthrough solar-industry technology?
Generating Unprecedented Demand
In light of SolarEdge Technologies’ fourth-quarter and full-year 2021 fiscal results, it’s evident that the company is moving products and raking in the revenue.
As CEO Zvi Lando put it, “The global demand for solar energy across all segments and geographies is extremely strong and generating unprecedented demand for our products.”
The data clearly supports Lando’s claims. First of all, SolarEdge Technologies managed to ship 1.92 Gigawatts (AC) of inverters in Q4, and 7.2 Gigawatts (AC) of inverters in full-year 2021.
This magnitude of throughput, without a doubt, contributed to SolarEdge achieving record Q4 and full-year 2021 revenue. More specifically, the company reported $551.9 million in the fourth quarter, and $1.96 billion in revenue in all of 2021.
That $1.96 billion represents a 34.6% year-over-year improvement over 2020’s revenue total. Also in 2021, SolarEdge generated record revenue in the company’s solar segment, totaling $1.79 billion for the year.
The Takeaway
There are companies that boast about being ESG-friendly, and they might tout their ability to monetize their business models.
SolarEdge Technologies actually has the numbers to cement its leadership position as a solar-tech disruptor. Besides, the company is breaking its own records in terms of revenue generation.
Hence, SEDG stock is worth a look, even if it’s over $300 per share. Really, a stake in SolarEdge Technologies should be worth the price of admission, as it can help to future-proof your portfolio as the solar revolution moves forward.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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