Back to top

Image: Bigstock

Why Array Technologies, Inc. (ARRY) Outpaced the Stock Market Today

Read MoreHide Full Article

Array Technologies, Inc. (ARRY - Free Report) closed at $8.05 in the latest trading session, marking a +2.94% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.48%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.94%.

Heading into today, shares of the company had lost 12.43% over the past month, lagging the Oils-Energy sector's gain of 3.84% and the S&P 500's gain of 2.46%.

The investment community will be closely monitoring the performance of Array Technologies, Inc. in its forthcoming earnings report. The company's upcoming EPS is projected at $0.22, signifying a 29.41% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $315.49 million, indicating a 36.33% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.67 per share and a revenue of $1.2 billion, indicating changes of +11.67% and +31.17%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Array Technologies, Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.45% upward. Currently, Array Technologies, Inc. is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Array Technologies, Inc. is at present trading with a Forward P/E ratio of 11.7. This expresses a discount compared to the average Forward P/E of 16.9 of its industry.

One should further note that ARRY currently holds a PEG ratio of 0.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ARRY's industry had an average PEG ratio of 0.67 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Array Technologies, Inc. (ARRY) - free report >>

Published in