Shoals Technologies (US:SHLS) ZACKS·2025-08-22 14:55Core Viewpoint - Shares of Shoals Technologies Group (SHLS) have seen a 2.7% increase over the past four weeks, closing at $5.76, with a potential upside indicated by Wall Street analysts' mean price target of $7.25, suggesting a 25.9% increase from the current price [1] Price Targets and Analyst Estimates - The mean estimate consists of 18 short-term price targets with a standard deviation of $1.63, indicating variability among analysts; the lowest estimate is $4.00 (30.6% decline), while the highest is $11.00 (91% increase) [2] - Analysts' price targets can often mislead investors, as empirical research shows that they rarely indicate the actual price direction of a stock [7][10] - A low standard deviation in price targets suggests a high degree of agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [9] Earnings Estimates and Market Sentiment - Analysts are optimistic about SHLS's earnings prospects, as indicated by a strong consensus in revising EPS estimates higher, which correlates with near-term stock price movements [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 10.7%, with five estimates moving higher and no negative revisions [12] - SHLS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating potential upside in the near term [13]