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Enphase Energy (ENPH) Beats Stock Market Upswing: What Investors Need to Know

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In the latest trading session, Enphase Energy (ENPH - Free Report) closed at $132.41, marking a +1.33% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.27% for the day. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq added 0.88%.

Shares of the solar technology company have appreciated by 17.95% over the course of the past month, outperforming the Oils-Energy sector's loss of 3.25% and the S&P 500's gain of 2.85%.

Investors will be eagerly watching for the performance of Enphase Energy in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.51, reflecting a 65.31% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $309.92 million, indicating a 56.42% downward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.93 per share and revenue of $1.49 billion. These totals would mark changes of -33.56% and -34.87%, respectively, from last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Enphase Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 moved 4.06% lower. At present, Enphase Energy boasts a Zacks Rank of #3 (Hold).

Investors should also note Enphase Energy's current valuation metrics, including its Forward P/E ratio of 44.61. For comparison, its industry has an average Forward P/E of 12.73, which means Enphase Energy is trading at a premium to the group.

We can additionally observe that ENPH currently boasts a PEG ratio of 2.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Solar industry currently had an average PEG ratio of 0.56 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ENPH in the coming trading sessions, be sure to utilize Zacks.com.


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