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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 $163.08 in the latest trading session, marking a -1.67% move from the prior day. This move lagged the S&P 500's daily gain of 1.4%.

Prior to today's trading, shares of the solar technology company had gained 16.57% over the past month. This has outpaced the Oils-Energy sector's loss of 0.78% and the S&P 500's gain of 1.07% 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 $0.43 per share. This would mark year-over-year growth of 152.94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $314.59 million, up 150.59% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2 per share and revenue of $1.33 billion. These totals would mark changes of +45.99% and +71.57%, respectively, from last year.

It is also important to note the 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ENPH is currently a Zacks Rank #3 (Hold).

Looking at its valuation, ENPH is holding a Forward P/E ratio of 82.79. This valuation marks a premium compared to its industry's average Forward P/E of 46.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 10% 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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