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

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In the latest trading session, Enphase Energy (ENPH - Free Report) closed at $179.72, marking a -1.16% move from the previous day. This change lagged the S&P 500's daily loss of 0.86%.

Coming into today, shares of the solar technology company had gained 32.75% in the past month. In that same time, the Oils-Energy sector lost 4.44%, while the S&P 500 gained 3.22%.

Investors will be hoping for strength from ENPH as it approaches its next earnings release. The company is expected to report EPS of $0.42, up 147.06% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $313.51 million, up 149.73% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2 per share and revenue of $1.33 billion, which would represent changes of +45.99% and +71.4%, respectively, from the prior year.

Investors might also notice 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. ENPH is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, ENPH is holding a Forward P/E ratio of 90.86. This represents a premium compared to its industry's average Forward P/E of 56.19.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 239, which puts it in the bottom 6% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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