The Daily Beat - November 18, 2025 📈

There were no S&P 500 earnings reactions on Monday, but we want to tell you about one of the best turnaround stories in the market.

Last year, SolarEdge $SEDG was left for dead after declining more than 90% from its all-time high in 2021.

Wall Street analysts turned hostile toward the company, believing it would soon join the solar graveyard.

But something happened earlier this month that changed everything.

On November 5, SolarEdge beat market expectations, and the stock posted its best earnings reaction ever. The price soared nearly 29% and engulfed the prior month's price action in a single decisive candlestick. 

This wasn’t just a good quarter... It was the kind of move that tells you the market had completely given up and was suddenly forced to rethink that decision.

To understand why, look at the fundamentals.

The real driver of this story is the thing that made it a broken stock in the first place: free cash flow.

And that’s where the comeback begins.

If you overlay free cash flow with the stock price, the picture is crystal clear.

When free cash flow began accelerating in 2016, the stock entered one of the strongest multi-year uptrends in recent market history. 

Then, when free cash flow peaked in 2021, the stock churned sideways for years. 

Finally, when free cash flow turned sharply negative in 2023 and early 2024, the stock entered a nasty multi-year bear market.

Fast-forward to late 2024, when free cash flow bottomed. That's precisely when the price stopped falling.

Now this key fundamental metric has turned positive again for the first time in years. 

Free cash flow is the cheat code... 

And with last quarter’s earnings report, the fundamentals are in a brand-new primary uptrend.

What about the technicals?

After a brutal multi-year downtrend, SolarEdge has resolved a textbook bearish-to-bullish reversal pattern. 

More importantly, the long-term moving average (52 weeks ~ 1 year), which had been sloping downward without interruption, has started curling higher.

This is the simplest way to see the change between supply and demand. 

The weight of evidence indicates the downtrend has ended and a new primary uptrend has begun. 

SolarEdge was given up for dead last year and tossed into the solar junkyard. But now it’s generating cash again, and the market loves it.

Most investors don’t believe in these stories until it’s too late. But turnarounds don’t wait for believers.

SolarEdge has already come back to life, and it's one of the strongest stocks in the market right now.

Happy turnaround Tuesday

-The Beat Team