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

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Enphase Energy (ENPH - Free Report) closed at $163.45 in the latest trading session, marking a -1.11% move from the prior day. This change lagged the S&P 500's 0.75% loss on the day.

Heading into today, shares of the solar technology company had gained 2.04% over the past month, outpacing the Oils-Energy sector's loss of 8.62% and lagging the S&P 500's gain of 2.74% in that time.

Investors will be hoping for strength from ENPH as it approaches its next earnings release, which is expected to be July 27, 2021. The company is expected to report EPS of $0.42, up 147.06% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $313.51 million, up 149.73% from the year-ago period.

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.

It is also important to note the recent changes to analyst estimates for ENPH. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 has moved 0.37% lower. ENPH is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note ENPH's current valuation metrics, including its Forward P/E ratio of 82.74. For comparison, its industry has an average Forward P/E of 51.26, which means ENPH is trading at a premium to the group.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 243, putting it in the bottom 5% 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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