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Enphase Energy (ENPH) Stock Sinks As Market Gains: What You Should Know

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Enphase Energy (ENPH - Free Report) closed at $151.35 in the latest trading session, marking a -1.16% move from the prior day. This change lagged the S&P 500's 0.77% gain on the day.

Heading into today, shares of the solar technology company had lost 1.59% over the past month, outpacing the Oils-Energy sector's loss of 3.53% and lagging the S&P 500's gain of 7.34% in that time.

Investors will be hoping for strength from ENPH as it approaches its next earnings release. 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, our latest consensus estimate is calling for revenue of $292.73 million, up 42.41% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.97 per share and revenue of $1.33 billion. These totals would mark changes of +43.8% and +72.2%, respectively, from last year.

Any recent changes to analyst estimates for ENPH should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. ENPH is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, ENPH is holding a Forward P/E ratio of 76.19. For comparison, its industry has an average Forward P/E of 54.31, which means ENPH is trading at a premium to the group.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% 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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