Back to top

Image: Bigstock

Enphase Energy (ENPH) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Enphase Energy (ENPH - Free Report) closed the most recent trading day at $136.97, moving -1.57% from the previous trading session. This change lagged the S&P 500's 0.18% loss on the day.

Prior to today's trading, shares of the solar technology company had gained 14.6% over the past month. This has outpaced the Oils-Energy sector's gain of 5.12% and the S&P 500's gain of 0.04% in that time.

Investors will be hoping for strength from ENPH as it approaches its next earnings release. The company is expected to report EPS of $0.43, up 152.94% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $314.59 million, up 150.59% from the year-ago period.

ENPH's full-year Zacks Consensus Estimates are calling for earnings of $2 per share and revenue of $1.33 billion. These results would represent year-over-year changes of +45.99% and +71.57%, respectively.

Any recent changes to analyst estimates for ENPH should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 1.13% lower. ENPH is currently a Zacks Rank #3 (Hold).

Digging into valuation, ENPH currently has a Forward P/E ratio of 69.46. This represents a premium compared to its industry's average Forward P/E of 50.39.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 7% 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.

To follow ENPH in the coming trading sessions, be sure to utilize Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Enphase Energy, Inc. (ENPH) - free report >>

Published in