Core Insights - SolarEdge Technologies and Enphase Energy have lost their significant post-pandemic gains, with SolarEdge underperforming compared to the S&P 500 Index and the iShares Global Clean Energy ETF [1] Company Performance - SolarEdge Technologies is currently underperforming relative to both the S&P 500 Index and the iShares Global Clean Energy ETF, indicating a decline in market performance [1] Market Context - The decline in performance for both SolarEdge and Enphase Energy suggests a broader trend affecting clean energy stocks post-pandemic, reflecting potential shifts in investor sentiment or market conditions [1]

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past ...

Group 1 - First Solar (FSLR) stock price increase narrowed to 4.5% [1] - Daqo New Energy ADR currently up 7.6%, SolarEdge up 4.2%, Clean Energy ETF QCLN up 2.4%, and Canadian Solar ADR up 1.6% [1] - U.S. solar manufacturers have filed anti-dumping and countervailing duty petitions against three Asian countries: India, Indonesia, and Laos [1]

Core Viewpoint - Morgan Stanley has adjusted ratings for several U.S. solar stocks due to market and policy changes, downgrading Enphase Energy and SolarEdge Technologies to "Neutral" while favoring Sunrun as a preferred stock [1][2]. Group 1: Enphase Energy - Morgan Stanley downgraded Enphase Energy's rating from "Overweight" to "Neutral" and reduced the target price from $64 to $37, reflecting downward pressure on stock prices and profit margins due to the industry's shift towards third-party systems [1]. - Despite the downgrade, the firm believes that Enphase remains one of the few consistently profitable solar companies with a net cash position [1]. - Analyst Mark Strouse noted that the recent "Inflation Reduction Act" may lead to a lack of positive momentum in the U.S. residential solar market, potentially impacting Enphase's market share and gross margins [1]. Group 2: SolarEdge Technologies - SolarEdge Technologies' rating was also downgraded from "Overweight" to "Neutral," with a target price set at $23, following a 34% increase in the stock's performance this month [2]. - Strouse maintains that SolarEdge holds a relatively favorable position in the U.S. residential inverter market, as the residential solar sector shifts towards third-party ownership models [2]. - New foreign entity regulatory frameworks have reduced competitive pressure in the market [2]. Group 3: Sunrun - Morgan Stanley is optimistic about Sunrun, assigning it an "Overweight" rating and raising the target price from $13 to $16, due to improved visibility in solar leasing and power purchase agreements [2]. - Sunrun is expected to meet the 48E tax credit eligibility by the end of 2027 and continue to benefit from storage incentives until the end of 2032 [2].

Company Performance - SolarEdge Technologies (SEDG) ended the recent trading session at $27.57, demonstrating a +1.77% change from the preceding day's closing price, outpacing the S&P 500's 0.28% gain [1] - Prior to today's trading, shares of SolarEdge had gained 30.05%, significantly outperforming the Oils-Energy sector's gain of 4.96% and the S&P 500's gain of 4.37% [1] Upcoming Earnings - SolarEdge is anticipated to report an EPS of -$0.81, marking a 54.75% rise compared to the same quarter of the previous year [2] - The Zacks Consensus Estimate for revenue is projecting net sales of $274.47 million, up 3.42% from the year-ago period [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates forecast earnings of -$3.25 per share and revenue of $1.09 billion, indicating changes of +85.86% and +17.55%, respectively, compared to the previous year [3] Analyst Estimates - Recent changes in analyst estimates for SolarEdge Technologies are important as they signify the changing landscape of near-term business trends [4] - Positive revisions in estimates convey analysts' confidence in the business performance and profit potential [4] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a proven track record of outperformance, with 1 stocks returning an average of +25% annually since 1988 [6] - Within the past 30 days, the consensus EPS projection for SolarEdge has moved 0.07% higher, and the company currently holds a Zacks Rank of 2 (Buy) [6] Industry Overview - The Solar industry is part of the Oils-Energy sector and currently carries a Zacks Industry Rank of 51, placing it within the top 21% of over 250 industries [7] - The Zacks Industry Rank assesses the strength of industry groups by calculating the average Zacks Rank of the individual stocks within those groups [7]

Group 1 - U.S. stock futures showed mixed results, with Dow futures decreasing by approximately 0.1% [1] - Helius Medical Technologies, Inc. (HSDT) experienced a significant pre-market decline, with shares dropping 10.9% to $8.42 following a $25 million share offering prospectus filing [1] - Blue Gold Limited (BGL) shares fell 15.6% to $63.00 in pre-market trading after a 30% drop on Monday [3] Group 2 - Pelthos Therapeutics Inc. (PTHS) shares decreased by 8.3% to $23.79 after a substantial gain of 60% on Monday [3] - AirJoule Technologies Corp (AIRJ) shares fell 5.8% to $4.82 in pre-market trading [3] - Aebi Schmidt Holding (AEBI) shares dipped 5.2% to $11.50 after a decline of over 10% on Monday [3] Group 3 - SolarEdge Technologies, Inc. (SEDG) shares declined 5.1% to $25.08 after a 4% drop on Monday, despite an upgrade from Keybanc analyst Sophie Karp from Underweight to Sector Weight [3] - Sunrun Inc. (RUN) shares slipped 4.8% to $10.58 after gaining more than 5% on Monday, also receiving an upgrade from Keybanc analyst Sophie Karp from Underweight to Sector Weight [3] - Shoals Technologies Group Inc (SHLS) shares fell 4% to $6.05 after a 5% gain on Monday [3]

Core Viewpoint - The Republican Party has canceled the consumption tax on wind and solar projects at the last moment, leading to a significant rise in U.S. solar stocks. However, concerns remain regarding the potential increase in costs for renewable energy developers due to reliance on foreign components and supply chains dominated by China [1][2]. Group 1: Tax Legislation Impact - The latest tax and spending bill passed by the U.S. Senate includes a gradual phase-out of tax credits for solar and wind energy starting in 2026, with complete elimination by 2028. Projects must be operational by the end of 2027 to qualify for tax credits [2]. - The bill allows nuclear tax credits to continue until 2036, while hydrogen tax credits will be eliminated by 2028 [2]. Group 2: Industry Reactions - The President of the Solar Energy Industries Association expressed concerns that the bill undermines the recovery of U.S. manufacturing and the country's global energy leadership, predicting higher electricity costs for households and potential job losses [2]. - Some U.S. manufacturers support the proposed tax changes, emphasizing the need to reduce dependence on China's clean energy supply chain [1]. Group 3: Legislative Challenges - The bill, known as the "Big and Beautiful Act," passed the Senate with a narrow margin of 51 to 50 but faces significant challenges in the House of Representatives due to concerns from some Republican lawmakers about its impact on the federal deficit [2]. - The Congressional Budget Office estimates that the bill could increase the federal deficit by at least $3 trillion over the next decade [2].

Group 1 - The U.S. Senate passed President Trump's latest tax and spending bill, which removed consumption taxes on wind and solar projects, leading to a significant rise in solar stocks [1] - Solar stocks such as Shoals Technologies (SHLS.US) increased nearly 24%, Array Technologies (ARRY.US) rose nearly 13%, and Sunrun (RUN.US) gained nearly 11% following the news [1] - The bill mandates a gradual phase-out of solar and wind tax credits starting in 2026, with a complete elimination by 2028, while nuclear tax credits will last until 2036 [1] Group 2 - The American Solar Industry Association expressed concerns that the bill undermines U.S. manufacturing recovery and energy leadership, potentially leading to higher electricity costs and job losses [2] - The bill passed the Senate with a narrow margin of 51 to 50 but faces challenges in the House due to concerns over its impact on the federal deficit, estimated to increase by at least $3 trillion over the next decade [2]

Group 1: Hong Kong Stocks - Lehua Entertainment (02306) surged over 24% due to strong market performance of its toy IP "WUKUKU," with multiple new products setting sales records and the theme song exceeding 1 billion views [1] - United Energy Group (00467) rose over 7% after signing a 15-year production increase contract with Uzbekistan's UNG, involving 57.8 billion cubic meters of oil and gas production, with an initial investment of $100 million to expand into Central Asia [1] - Smoore International (06969) fell over 3% as shareholder Yiwei Lithium Energy plans to reduce its stake by 3.5% (216 million shares), resulting in a decrease of its holding to 27.23%, no longer being the controlling shareholder [1] - New World Development (00200) dropped over 5% after completing a "2 for 1" rights issue, issuing 758 million shares and raising HKD 771 million, with oversubscription of 13 times [1] - Fourth Paradigm (06682) increased over 7% after launching AI solutions for the manufacturing industry, covering production optimization to supply chain intelligence upgrades [1] - Shandong High-Tech Holdings (00412) rose over 4% as Zhongtai Securities highlighted significant synergy between its new energy and digital infrastructure, with a data center PUE value of 1.15, enhancing financial integration [1] - KANAT Optical (02276) increased over 4% due to an explosion in the smart glasses market (e-commerce transactions up 8 times), with Meta collaborating with Oakley to launch AI glasses, positioning the company with leading 3C enterprises [1] Group 2: Other Notable Stocks - Sipai Health (00314) rose over 7% after partnering with Anruijiaer to develop customized insurance, planning to sell 6 pharmacies for 5.89 million to focus on core medical insurance business [2] - SF Express (09699) increased over 5% after raising its delivery service revenue cap for 2025/26 to HKD 12.8 billion / HKD 20.5 billion, with demand growth exceeding expectations [2] - Liufu Group (00590) fell over 3% as it projected a 40% decline in profits for the 2025 fiscal year, primarily due to gold hedging losses and high base effects from acquisition gains [2] - Zhenjiu Lidu (06979) rose over 4% after announcing Yao Annan as the "Cultural Heritage Ambassador" for liquor, leveraging Huawei-related topics to boost brand visibility [2] - Ideal Auto-W (02015) dropped over 4% as Meituan's Wang Xing sold 5.73 million shares for HKD 600 million, reducing his stake to 20.61% [2] - Health Road (02587) surged over 7% as its liver disease AI management platform was selected for Beijing's digital medical verification program, supporting WHO's "2030 Hepatitis Elimination" goal [2] - Gilead Sciences-B (01672) rose over 5% after its psoriasis oral drug ASC50 completed the first dosing in Phase I clinical trials in the U.S., targeting the IL-17 pathway [2] - China Silver Group (00815) increased over 10% after partnering with Zefeng Gold to acquire a 55% stake in a lead-zinc exploration company, gaining exploration rights over 50.8 square kilometers in Tibet [2] Group 3: U.S. Stocks - Verve Therapeutics (VERV.US) skyrocketed over 80% as Eli Lilly prepares to acquire the gene-editing company for up to $1.3 billion, with $1 billion as an upfront payment and $300 million contingent on specific clinical milestones [4] - Solar energy stocks plummeted, with Sunrun (RUN.US) down over 40%, Solaredge Technologies (SEDG.US) down over 41%, and First Solar (FSLR.US) down over 22%, following a Republican proposal in the U.S. Senate to terminate wind and solar tax credits by 2028, raising concerns about the industry's outlook [4] - Reddit (RDDT.US) rose over 6% after launching the AI advertising tool Reddit Insights, enhancing ad targeting through real-time user trend analysis [4] - Bitcoin-related stocks fell, with CleanSpark (CLSK.US) down over 7% and Riot Platforms (RIOT.US) down over 5%, as Bitcoin prices dropped nearly 2% to $105,580 amid escalating tensions in the Middle East and high leverage positions in the derivatives market [4] - AMD (AMD.US) continued to rise 0.56% after officially launching the Zen5 architecture Ryzen Threadripper processors, covering the workstation and desktop markets, with a market share close to 50% in China for Q1, although there are concerns about its cost-performance ratio [5] - Brain Regen Technologies (RGC.US) surged over 30% after announcing a 38-for-1 stock split, coupled with FDA clinical trial approval news, although its actual business has no revenue and a very small float, indicating significant retail speculation [6] - Jabil (JBL.US) rose over 8%, reaching a new all-time high of $202.5, with Q3 revenue increasing 15% year-on-year to $7.83 billion, raising its full-year revenue forecast to $29 billion and planning a $500 million investment to support AI data center infrastructure [6] - Niu Technologies (NIU.US) increased over 11% after launching its new NX Play electric motorcycle on Douyin, integrating a smart riding system to enhance user experience [6] - T-Mobile US (TMUS.US) fell nearly 4% as SoftBank sold 21.5 million shares at $224 each, a 3% discount, triggering market sell-off [6] - The pharmaceutical sector saw widespread declines, with Eli Lilly (LLY.US) down over 2% and Novo Nordisk (NVO.US) down over 3%, as concerns grew over the potential impact of the U.S. Senate tax bill on the industry, coupled with profit-taking ahead of some companies' earnings reports [6] - The gold sector declined, with Gold Fields (GFI.US) down over 2.1%, and spot gold fell 0.27% to $3,375.53, as easing tensions in the Middle East reduced safe-haven demand, alongside Citigroup's bearish long-term gold price forecast [7]

Core Viewpoint - SolarEdge Technologies (SEDG) shares are experiencing a decline following a downgrade from Hold to Sell by GLJ Research analyst Gordon L. Johnson II, amid ongoing struggles in the U.S. and European markets [1] Group 1: Market Challenges - SolarEdge is facing significant headwinds, with analysts noting that the anticipated revival of the 48E 30% tax credit for solar companies is unlikely to benefit the company [1] - The Senate's tax-and-spend bill indicates that U.S. residential solar finance companies will lose the ability to sell tax credits to third parties, posing a potential existential threat to those reliant on inflated solar system values [2] Group 2: Performance Metrics - In April 2025, while the overall sales of inverters in California increased by 23.0% year-over-year, SolarEdge's sales only grew by 2.3% year-over-year, indicating a lack of demand pull-forward for the company [4] - As of the latest check, SEDG shares have dropped by 34.4%, trading at $15.74 [4]