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Bull Of The Day: Enphase Energy (ENPH)

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Enphase Energy (ENPH - Free Report) is a Zacks Rank #1 (Strong Buy) that sports the type of divergence that I love to see in the Zacks Style Scores.  I am all about growth, and I know that value investors and growth investors are almost always looking for different things.  ENPH has an A for Growth and a D for Value, so I know I am on the right path.  Let's take a look at how the stock achieved the best Zacks Rank.

Description

Enphase Energy, Inc. delivers microinverter technology for the solar industry, which increases productivity and reliability of solar modules. The Company builds a semiconductor-based microinverter system that converts direct current electricity to alternating current electricity at the individual solar module level. Enphase sells its microinverter systems primarily to distributors who resell them to solar installers. It also sells directly to installers, as well as through original equipment manufacturers. Enphase Energy, Inc. is headquartered in Petaluma, California.

Earnings History

The earnings history is ok, two beats are the bookends of a meet and a miss. So not great by any means, but not terrible.

Estimate Revisions

Estimates are trickling higher, but not surging… so that means there is room for improvement and that helps our story.

Valuation

The valuation is stiff but worth it. A 37x forward multiple is hard to swallow as is 153x book. The top line growth is 43% and that is great to see as is the constant improvement in margins.

Chart

The real story here is the chart.  Over the last several weeks, strong stocks have remained strong and weak stocks have been getting weaker.  ENPH is a strong stock... just look at that chart and you will see a lack of selling... that tells me investors want to hang on to this name and acquire more shares.  All of that will continue to send the stock price higher and higher.

 

Enphase Energy, Inc. Price, Consensus and EPS Surprise

Enphase Energy, Inc. Price, Consensus and EPS Surprise

Enphase Energy, Inc. price-consensus-eps-surprise-chart | Enphase Energy, Inc. Quote

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