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Enphase Energy (ENPH) Gains As Market Dips: What You Should Know

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Enphase Energy (ENPH - Free Report) closed the most recent trading day at $185.45, moving +0.5% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Prior to today's trading, shares of the solar technology company had gained 31.47% over the past month. This has outpaced the Oils-Energy sector's gain of 5.36% and the S&P 500's gain of 2.67% in that time.

Enphase Energy will be looking to display strength as it nears its next earnings release. On that day, Enphase Energy is projected to report earnings of $0.65 per share, which would represent year-over-year growth of 16.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $434.09 million, up 43.86% from the year-ago period.

ENPH's full-year Zacks Consensus Estimates are calling for earnings of $3.15 per share and revenue of $2.01 billion. These results would represent year-over-year changes of +30.71% and +45.62%, respectively.

Any recent changes to analyst estimates for Enphase Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.17% higher within the past month. Enphase Energy is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Enphase Energy is holding a Forward P/E ratio of 58.65. This valuation marks a premium compared to its industry's average Forward P/E of 50.31.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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