Why SolarEdge Technologies Stock Is Burning Brightly in Investors' Eyes Today

Key Points

• SolarEdge announced a significant new supply agreement with Solar Landscape today.

• The two companies will work to ramp up commercial rooftop solar deployments across several states through 2026.

• With revenue and net income dropping over the past two years, investors may want to see SolarEdge's finances improve before picking up shares.

• 10 stocks we like better than SolarEdge Technologies ›

Markets have been unsteady today, with both the S&P 500 (SNPINDEX: ^GSPC) and Dow Jones Industrial Average (DJINDICES: ^DJI) struggling to maintain their gains. There's no doubt, however, about the market's sentiment toward solar industry powerhouse SolarEdge Technologies (NASDAQ: SEDG) today. Thanks to the company announcing a significant new deal, shares of SolarEdge are now shining brightly on investors' radars.

As of 2:45 p.m. ET, shares of SolarEdge are up 9.7%, paring back some of their 12.7% gain from earlier today.

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Investors are lit up about SolarEdge's new deal

In an effort to expedite the deployment of solar power systems on both large-scale commercial and industrial rooftops, SolarEdge has signed an agreement with Solar Landscape, a leading developer of commercial rooftop solar systems.

The deal will see SolarEdge supply Solar Landscape with solar technology to support the development of more than 500 commercial rooftop projects, located in several states, to be built through 2026.

Investors are enthused today about the announcement due to the scope of the agreement. Commenting on the deal, RBC Capital suggested that the deal represents about 630 megawatts (MW) of solar power capacity. To put this in perspective, SolarEdge reported commercial shipments of 2,319 MW in all of 2024.

Is now a good time to warm up to SolarEdge stock?

Bulls aren't solely looking at the deal today as a positive in and of itself. Instead, they're interpreting it as a sign that the sun hasn't set on the solar industry, despite the fact that nuclear energy is gaining the lion's share of attention right now as a leading alternative energy source.

Although the deal with Solar Landscape is encouraging, SolarEdge had seen revenue drop from $3.1 billion in 2022 to $900.5 million in 2024. Similarly, net income plunged from $93.8 million in 2022 to a net loss of $1.8 billion in 2024. At this point, solar investors may want to wait for the company's finances to show some improvement before jumping into an investment.

Should you invest $1,000 in SolarEdge Technologies right now?

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.