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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 at $162.69 in the latest trading session, marking a +0.33% move from the prior day. This change lagged the S&P 500's 1.18% gain on the day. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 1.76%.

Coming into today, shares of the solar technology company had gained 0.65% in the past month. In that same time, the Oils-Energy sector gained 2.75%, while the S&P 500 gained 4.55%.

Wall Street will be looking for positivity from ENPH as it approaches its next earnings report date. In that report, analysts expect ENPH to post earnings of $0.41 per share. This would mark year-over-year growth of 7.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $292.73 million, up 42.41% from the year-ago period.

ENPH's full-year Zacks Consensus Estimates are calling for earnings of $1.97 per share and revenue of $1.33 billion. These results would represent year-over-year changes of +43.8% and +72.2%, respectively.

Investors should also note any recent changes to analyst estimates for ENPH. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. 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 82.36. This valuation marks a premium compared to its industry's average Forward P/E of 60.75.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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