IPO Stock Of The Week Array Technologies (ARRY) soared this week, making a bullish move and topping an early entry. ARRY stock is also approaching its latest buy point and made this week’s IPO Leaders list.
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Albuquerque, New Mexico’s Array designs and manufactures solar tracking systems. These allow ground-mounted solar panels to rotate and follow the sun throughout the day.
On May 12, solar giant First Solar (FSLR) announced it will acquire Evolar AB for up to $80 million. FSLR stock rocketed above resistance, lifting other solar stocks as well. Array shares soared 16%.
Sweden’s Evolar develops thin film used in solar panels. The acquisition should speed up the development of next-generation solar technology, including highly-efficient tandem devices.
Q1 earnings reported this month surged 213% year over year to 25 cents per share, while sales rose 25% to $376.8 million.
“When we compare Array’s performance this quarter to a year ago, the contrast is striking. We have not only continued to grow the business organically but have improved profitability at the same time,” CEO Kevin Hostetler commented in the earnings news release.
“The meaningful expansion in our gross margin year over year represents our improved contracting process but is also indicative of the significant improvements we have made in our operational execution and our product and pricing strategies.”
Annual earnings are expected to surge 121% in 2023 and 46% in 2024, according to FactSet.
ARRY stock boasts a strong 97 out of a perfect 99 Composite Rating. This ranking blends key fundamental and technical metrics to help investors easily find top stocks.
This IPO Stock Hits Early Buy Point
The IPO stock leader regained its 50-day line last week and moved above an early entry at 22.59. Shares are approaching a consolidation’s 24.69 buy point, according to MarketSmith. Shares are about 5% away from the latest buy point amid solid gains Friday.
Keep a close eye on the relative strength line, which measures price performance vs. the S&P 500. It remains off old highs but this week hit its highest level since January. The RS line should hit a new high on the breakout day or shortly thereafter.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on IPO stocks and the stock market.
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Source: https://www.investors.com/stock-lists/ipo-analysis/ipo-stock-of-the-week-hot-solar-stock-array-hits-buy-point-with-213-earnings-growth/?src=A00220&yptr=yahoo