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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 $161.36 in the latest trading session, marking a -1.24% move from the prior day. This change lagged the S&P 500's daily loss of 0.46%.

Coming into today, shares of the solar technology company had lost 10.37% in the past month. In that same time, the Oils-Energy sector lost 0.85%, while the S&P 500 gained 1.93%.

Wall Street will be looking for positivity from ENPH as it approaches its next earnings report date. On that day, ENPH is projected to report earnings of $0.48 per share, which would represent year-over-year growth of 60%. Meanwhile, our latest consensus estimate is calling for revenue of $344.57 million, up 93.03% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.10 per share and revenue of $1.34 billion, which would represent changes of +53.28% and +72.78%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ENPH. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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. The Zacks Consensus EPS estimate has moved 0.36% higher within the past month. ENPH is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, ENPH is currently trading at a Forward P/E ratio of 77.72. This represents a premium compared to its industry's average Forward P/E of 57.38.

Also, we should mention that ENPH has a PEG ratio of 2.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Solar stocks are, on average, holding a PEG ratio of 2.23 based on yesterday's closing prices.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 15% 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.

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


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