We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Enphase Energy (ENPH) Stock Sinks As Market Gains: Here's Why
Read MoreHide Full Article
Enphase Energy (ENPH - Free Report) closed at $127.55 in the latest trading session, marking a -0.27% move from the prior day. This move lagged the S&P 500's daily gain of 0.11%. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq added 0.56%.
The solar technology company's shares have seen an increase of 12% over the last month, surpassing the Oils-Energy sector's gain of 1.2% and the S&P 500's gain of 5.06%.
The upcoming earnings release of Enphase Energy will be of great interest to investors. It is anticipated that the company will report an EPS of $0.51, marking a 65.31% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $309.92 million, down 56.42% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.93 per share and revenue of $1.49 billion, which would represent changes of -33.56% and -34.87%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Enphase Energy. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.06% decrease. Enphase Energy is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Enphase Energy is presently trading at a Forward P/E ratio of 43.66. For comparison, its industry has an average Forward P/E of 14.77, which means Enphase Energy is trading at a premium to the group.
It's also important to note that ENPH currently trades at a PEG ratio of 2.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Solar stocks are, on average, holding a PEG ratio of 0.56 based on yesterday's closing prices.
The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 222, placing it within the bottom 12% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Enphase Energy (ENPH) Stock Sinks As Market Gains: Here's Why
Enphase Energy (ENPH - Free Report) closed at $127.55 in the latest trading session, marking a -0.27% move from the prior day. This move lagged the S&P 500's daily gain of 0.11%. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq added 0.56%.
The solar technology company's shares have seen an increase of 12% over the last month, surpassing the Oils-Energy sector's gain of 1.2% and the S&P 500's gain of 5.06%.
The upcoming earnings release of Enphase Energy will be of great interest to investors. It is anticipated that the company will report an EPS of $0.51, marking a 65.31% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $309.92 million, down 56.42% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.93 per share and revenue of $1.49 billion, which would represent changes of -33.56% and -34.87%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Enphase Energy. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.06% decrease. Enphase Energy is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Enphase Energy is presently trading at a Forward P/E ratio of 43.66. For comparison, its industry has an average Forward P/E of 14.77, which means Enphase Energy is trading at a premium to the group.
It's also important to note that ENPH currently trades at a PEG ratio of 2.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Solar stocks are, on average, holding a PEG ratio of 0.56 based on yesterday's closing prices.
The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 222, placing it within the bottom 12% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.