With low oil prices expected well into the future, many were pretty bearish on companies in the broader solar industry. After all, with lower oil prices and less demand for energy in general, the thinking was that solar wouldn’t be able to compete in this environment, much like in previous downturns of oil.

But thanks to more efficient companies and changing attitudes by consumers, the near-term future look may finally be bright for many solar companies. In fact, after a big drop in late 2015 and early 2016, the industry currently has a top 10% industry rank and not a single company has a rank worse than ‘hold’ right now.

But which is the best company to watch in this market right now? Well, arguably, SolarEdge (SEDG – Snapshot Report) is worth a closer look as the security has some real promise to be one of the top picks in the space for 2016.

SEDG in Focus

SEDG is an Israeli company in the solar business, providing monitoring and optimizing solutions for solar panels. A main focus of the company is its ‘StorEdge’ products which help with providing backup power solutions and monitoring capabilities, while the company also has a partnership with Tesla and their home battery project, the Powerwall, too.

This focus on improvement instead of building panels has been a winning strategy for SEDG as the company has easily outperformed the solar industry at large, represented by the Guggenheim Solar ETF (TAN – ETF report) over the past year. SEDG has also beaten out TAN on a YTD look too, making for a compelling pick as the top choice in this space going forward.

Analyst Opinion

Analysts who follow the company appear to agree with this assessment, as they have been raising their earnings estimates for SolarEdge stock lately. In fact, not a single estimate for SEDG stock has gone lower in the past sixty days for any of the time frames that we study, while three have gone higher for the current quarter and the current year.