Enphase Energy (ENPH - Free Report) closed the most recent trading day at $110.71, moving +1.6% from the previous trading session. This change outpaced the S&P 500's 0.15% loss on the day. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.47%.
Heading into today, shares of the solar technology company had gained 49.62% over the past month, outpacing the Oils-Energy sector's loss of 4.69% and the S&P 500's gain of 3.19% in that time.
Investors will be hoping for strength from ENPH as it approaches its next earnings release, which is expected to be October 27, 2020. On that day, ENPH is projected to report earnings of $0.24 per share, which would represent a year-over-year decline of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $169.79 million, down 5.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.17 per share and revenue of $737.62 million. These totals would mark changes of +23.16% and +18.14%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ENPH. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate remained stagnant. ENPH is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that ENPH has a Forward P/E ratio of 93.36 right now. Its industry sports an average Forward P/E of 42.66, so we one might conclude that ENPH is trading at a premium comparatively.
It is also worth noting that ENPH currently has a PEG ratio of 3.26. 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. ENPH's industry had an average PEG ratio of 2.41 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.