SolarEdge Technologies (NASDAQ:SEDG | SEDG Price Prediction) stock is surging 10% on Tuesday, rallying to $38 intraday. Solar-industry peers Enphase Energy (NASDAQ:ENPH) and Sunrun (NASDAQ:RUN) are joining the party, with the shares of both moving 6% to 7% higher during the trading session.
The broad-based move looks like a sector-wide relief rally after weeks of pressure. Clean energy stocks have been struggling for catalysts in 2026, and today’s bounce across all three names suggests short covering and oversold conditions are doing a lot of the heavy lifting.
SolarEdge Has the Strongest Story
SEDG stock is the standout here, and for good reason. This is a genuine turnaround playing out in real time. TD Cowen upgraded the stock to Buy, citing turnaround progress, and the fundamentals are starting to back that up.
SolarEdge reported Q4 2025 earnings on February 18, with revenue of $335.36 million against a $328.94 million estimate. That represents 96.4% year-over-year revenue growth — not too shabby.
The company also swung full-year operating cash flow from -$313.32 million in fiscal 2024 to +$104.26 million in 2025. It appears, then, that SolarEdge is a renewables business that has found its footing.
Furthermore, SolarEdge’s non-GAAP gross margin hit 23.3% in Q4, up from 18.8% in Q3, marking the firm’s fifth consecutive quarter of margin expansion. CEO Shuki Nir framed the path forward clearly:
“In 2026 we are shifting decisively to offense, focused on moving toward profitable growth and capturing global market share through the rollout of the SolarEdge Nexis platform.”
That’s the kind of language investors want to hear from a company that spent much of the past two years in survival mode. TD Cowen also raised its price target to $43 from $38 following the report. SEDG stock is now up 105.28% over the past year, a number that reflects just how deep the hole was before the recovery began.
Enphase and Sunrun: Bouncing Off the Mat
The story for Enphase Energy and Sunrun stocks is different. These are not momentum names right now: Enphase stock is down 33.7% over the past year, and Sunrun shares have shed 38.42% year-to-date. Thus, today’s share-price moves are rebounds from deeply depressed levels, not breakouts.
That said, both companies have real catalysts worth watching. Enphase began U.S. shipments of its new IQ9 Commercial Microinverters in January 2026, a fresh product cycle that could drive incremental demand.
Moreover, the company posted a Q4 2025 EPS beat of $0.71 versus the $0.58 estimate, with U.S. sell-through demand up 21% sequentially. Despite the headwinds driven by tariffs, Enphase guided Q1 2026 non-GAAP gross margin at 42% to 45%, including roughly 5 percentage points of reciprocal tariff impact.
Sunrun, meanwhile, delivered one of the most surprising earnings beats in the sector when it reported on February 26. Revenue came in at $1.16 billion against a $601.77 million estimate, and EPS of $0.38 crushed the -$0.04 estimate.
The company also posted a record 71% storage attachment rate. CEO Mary Powell stated the mission succinctly: “Sunrun is delivering innovative, storage-first energy offerings that protect American families from rising utility costs.”
Sunrun also formed a $500 million joint venture with HASI to boost distributed power development. Even so, RUN stock is still down sharply from where it started the year.
The Macro Tailwind Worth Watching
One underappreciated factor in today’s rally is the 10-year Treasury yield. At 4.15%, this yield sits near its 12-month low of 3.97% hit on February 27.
Bear in mind, solar installations are financed products. When borrowing costs ease, the economics of going solar get better for homeowners and installers alike.
Any further softening in rates would be a genuine tailwind for all three of these names. We explored this dynamic in depth in “The One Fed Signal That Could Flip CNRG From Loser to Leader in 2026”.
Today’s solar-stock rally is a reminder that this sector can move fast when sentiment shifts. SolarEdge has the clearest fundamental case, with margin expansion, a cash flow turnaround, and analyst support behind it.
Enphase and Sunrun are more complicated, with real product and partnership catalysts offset by tariff risk and a tough macro backdrop for residential solar. Stay tuned in the coming days to see if these names can hold their share-price gains through multiple trading sessions.
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