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Enphase Energy (ENPH) Stock Declines While Market Improves: Some Information for Investors

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Enphase Energy (ENPH - Free Report) closed the most recent trading day at $121.04, moving -0.21% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 1.01%. Elsewhere, the Dow saw an upswing of 0.55%, while the tech-heavy Nasdaq appreciated by 1.13%.

Shares of the solar technology company witnessed a gain of 10.59% over the previous month, beating the performance of the Oils-Energy sector with its gain of 0.75% and the S&P 500's gain of 2.5%.

The investment community will be closely monitoring the performance of Enphase Energy in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.78, marking a 23.53% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $393.32 million, reflecting a 28.63% fall from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.58 per share and revenue of $1.44 billion. These totals would mark changes of -41.5% and -37.23%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Enphase Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.7% lower. Enphase Energy presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Enphase Energy is holding a Forward P/E ratio of 47.08. For comparison, its industry has an average Forward P/E of 13.31, which means Enphase Energy is trading at a premium to the group.

Meanwhile, ENPH's PEG ratio is currently 2.97. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Solar industry currently had an average PEG ratio of 1.92 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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