Array Technologies (ARRY): Valuation Perspective Following Raised Guidance and Q2 Revenue Surge

Array Technologies (ARRY) shares are in the spotlight after the company raised its guidance, reporting over 40% year-over-year revenue growth in Q2 and signaling faster market share gains compared to rival Nextracker.

See our latest analysis for Array Technologies.

Array Technologies’ strong Q2 results and upbeat guidance have given the stock noticeable momentum, with a 32% share price gain over the past three months and a year-to-date return above 30%. While the one-year total shareholder return stands at 35%, a look at the three-year period still leaves long-term holders underwater. However, recent performance suggests sentiment is improving and investors are re-evaluating the company’s growth story as it accelerates market share gains.

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With the stock climbing and guidance improving, investors are left to consider whether Array Technologies still trades at an attractive valuation or if the recent rally means all the future growth is already reflected in the price.

Most Popular Narrative: 14.1% Undervalued

Based on the most widely followed narrative, Array Technologies' fair value sits notably above the last close price. This sets the stage for an in-depth look at what’s driving this perspective.

Enhanced product mix and technology innovation, with over 35% of the order book for recently launched, higher-value products targeting challenging terrains and emerging extreme weather concerns. This is increasing pricing power and supporting margin expansion, thus improving gross margins and earnings.

Read the complete narrative.

Curious what powers this optimism? The forecast that justifies this price leans on profit growth projections, along with a controversial margin jump and a future earnings multiple more often seen in high-fliers. Which numbers could make or break the narrative’s conclusion? Find out what is really fueling that upside in the full story.

Result: Fair Value of $10.22 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing regulatory uncertainty and rising tariffs could challenge Array’s ability to deliver on growth expectations. These factors may potentially derail the current bullish narrative.

Find out about the key risks to this Array Technologies narrative.

Build Your Own Array Technologies Narrative

If you see things differently or want to dig into the numbers on your own terms, it only takes a few minutes to craft your own story, Do it your way

A great starting point for your Array Technologies research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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