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Enphase Energy (ENPH) Outperforms Broader Market: What You Need to Know

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Enphase Energy (ENPH - Free Report) closed the latest trading day at $62.05, indicating a +1.94% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.53%. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.25%.

The the stock of solar technology company has fallen by 11.37% in the past month, lagging the Oils-Energy sector's gain of 5.88% and the S&P 500's gain of 1.24%.

The upcoming earnings release of Enphase Energy will be of great interest to investors. The company's earnings report is expected on February 4, 2025. The company is forecasted to report an EPS of $0.75, showcasing a 38.89% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $376.03 million, showing a 24.28% escalation compared to the year-ago quarter.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Enphase Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.36% lower. At present, Enphase Energy boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Enphase Energy is currently exchanging hands at a Forward P/E ratio of 17.67. This indicates a premium in contrast to its industry's Forward P/E of 9.96.

Investors should also note that ENPH has a PEG ratio of 4.95 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Solar industry was having an average PEG ratio of 0.67.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.


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