Why Array Technologies, Inc. (ARRY) Dipped More Than Broader Market Today

In the latest trading session, Array Technologies, Inc. (ARRY) closed at $7.67, marking a -2.29% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.05% for the day. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, added 0.45%.

Prior to today's trading, shares of the company had gained 29.11% outpaced the Oils-Energy sector's gain of 3.82% and the S&P 500's gain of 3.44%.

Investors will be eagerly watching for the performance of Array Technologies, Inc. in its upcoming earnings disclosure. 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.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.67 per share and revenue of $1.2 billion, which would represent changes of +11.67% and +31.17%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Array Technologies, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.55% lower within the past month. Array Technologies, Inc. is currently a Zacks Rank #3 (Hold).

In terms of valuation, Array Technologies, Inc. is presently being traded at a Forward P/E ratio of 11.74. This denotes a discount relative to the industry average Forward P/E of 16.6.

Meanwhile, ARRY's PEG ratio is currently 0.54. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Solar industry stood at 0.65 at the close of the market yesterday.

The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 49, positioning it in the top 20% of all 250+ industries.