SolarEdge Stock Surged 230% in 2020 -- Is It a Buy for 2021?

SolarEdge Technologies (NASDAQ: SEDG) stock has risen 230% in 2020 as of this writing. The company's impressive growth combined with investors' enthusiasm for solar power drove the stock's astronomical rise during the year. Solar energy's share in global electricity generation is expected to rise from the current 3% to around 20% by 2050. Even though the market for solar looks promising, can SolarEdge keep up growth in line with its high valuation? Let's see if the stock is a buy for 2021.

Over the years, SolarEdge has done a great job in growing its customer base. This helped it to deliver an impressive top- and bottom-line performance. It grew its quarterly revenue at an average rate of 38% over the last five years. However, the company's revenue in the second quarter this year fell due to COVID-19, which isn't a major concern considering that other solar companies' revenues were also hit due to the pandemic.