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Enphase Energy (ENPH) Gains But Lags Market: What You Should Know

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Enphase Energy (ENPH - Free Report) closed the most recent trading day at $148.48, moving +0.34% from the previous trading session. This change lagged the S&P 500's 0.52% gain on the day. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.12%.

Coming into today, shares of the solar technology company had lost 18.18% in the past month. In that same time, the Oils-Energy sector lost 2.52%, while the S&P 500 lost 0.76%.

Wall Street will be looking for positivity from ENPH as it approaches its next earnings report date. The company is expected to report EPS of $0.41, up 7.89% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $292.73 million, up 42.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.97 per share and revenue of $1.33 billion, which would represent changes of +43.8% and +72.2%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ENPH. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.31% higher. ENPH is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, ENPH currently has a Forward P/E ratio of 75.15. Its industry sports an average Forward P/E of 48.44, so we one might conclude that ENPH is trading at a premium comparatively.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 20% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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