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Here's Why Enphase Energy (ENPH) Fell More Than Broader Market
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The latest trading session saw Enphase Energy (ENPH - Free Report) ending at $112.08, denoting a -0.91% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.3%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.25%.
The solar technology company's shares have seen an increase of 9.37% over the last month, surpassing the Oils-Energy sector's of 0% and the S&P 500's gain of 3.42%.
The investment community will be closely monitoring the performance of Enphase Energy in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.77, reflecting a 24.51% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $394.6 million, down 28.39% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.55 per share and revenue of $1.41 billion. These totals would mark changes of -42.18% and -38.45%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Enphase Energy. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
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. Over the past month, there's been a 3.18% fall in the Zacks Consensus EPS estimate. As of now, Enphase Energy holds a Zacks Rank of #3 (Hold).
In terms of valuation, Enphase Energy is presently being traded at a Forward P/E ratio of 44.41. This represents a premium compared to its industry's average Forward P/E of 13.76.
Also, we should mention that ENPH has a PEG ratio of 2.8. 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. The Solar industry currently had an average PEG ratio of 1.86 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Here's Why Enphase Energy (ENPH) Fell More Than Broader Market
The latest trading session saw Enphase Energy (ENPH - Free Report) ending at $112.08, denoting a -0.91% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.3%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.25%.
The solar technology company's shares have seen an increase of 9.37% over the last month, surpassing the Oils-Energy sector's of 0% and the S&P 500's gain of 3.42%.
The investment community will be closely monitoring the performance of Enphase Energy in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.77, reflecting a 24.51% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $394.6 million, down 28.39% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.55 per share and revenue of $1.41 billion. These totals would mark changes of -42.18% and -38.45%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Enphase Energy. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
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. Over the past month, there's been a 3.18% fall in the Zacks Consensus EPS estimate. As of now, Enphase Energy holds a Zacks Rank of #3 (Hold).
In terms of valuation, Enphase Energy is presently being traded at a Forward P/E ratio of 44.41. This represents a premium compared to its industry's average Forward P/E of 13.76.
Also, we should mention that ENPH has a PEG ratio of 2.8. 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. The Solar industry currently had an average PEG ratio of 1.86 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.