Jim Cramer’s Latest Lightning Round: 11 Stocks to Watch

6. SolarEdge Technologies, Inc. (NASDAQ:SEDG)

Number of Hedge Fund Holders: 24

When asked about SolarEdge Technologies, Inc. (NASDAQ:SEDG), here’s what Mad Money’s host had to say:

“Well… I’m gonna give you some positive news about SolarEdge Technologies. I’ve been in this business a long time and I have learned one thing: stocks stop at zero.”

SolarEdge Technologies (NASDAQ:SEDG) designs and manufactures optimized inverter systems for solar installations, providing a range of energy management solutions, monitoring platforms, and battery storage options. The company has faced significant challenges, with a 73% drop in revenue during the second quarter compared to the same period last year. This downturn is particularly evident in Europe, where a high interest rate environment has led to decreased spending on renewable energy systems.

Management noted during the last earnings call that the commercial and industrial market in Europe has remained largely flat over the last three quarters, with little expectation for improvement in the latter half of the year across most countries. While the company has seen a reduction in inventory levels during the second quarter, these levels remain elevated due to the sluggish recovery in the European market.

On October 23, JPMorgan lowered the price target on SolarEdge Technologies (NASDAQ:SEDG) to $29 from $35 and maintained an Overweight rating. The adjustment occurred because of weaker-than-expected demand for solar and storage solutions highlighted in Enphase Energy’s third-quarter earnings report.

Although the companies differ in their product offerings and geographic presence, the analyst suggested that it is better to revise estimates ahead of SolarEdge’s upcoming earnings call on November 6, given the company’s exposure to the challenging European market. JPMorgan acknowledges that the stock may experience pressure until there is greater clarity on future demand and market conditions.