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Enphase Energy (ENPH) Gains But Lags Market: What You Should Know

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In the latest trading session, Enphase Energy (ENPH - Free Report) closed at $195.72, marking a +0.25% move from the previous day. This change lagged the S&P 500's 1.06% gain on the day. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 0.4%.

Prior to today's trading, shares of the solar technology company had lost 1.85% over the past month. This has was narrower than the Oils-Energy sector's loss of 14.41% and the S&P 500's loss of 8.3% in that time.

Investors will be hoping for strength from Enphase Energy as it approaches its next earnings release. On that day, Enphase Energy is projected to report earnings of $0.66 per share, which would represent year-over-year growth of 24.53%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $507.4 million, up 60.54% from the year-ago period.

ENPH's full-year Zacks Consensus Estimates are calling for earnings of $3.51 per share and revenue of $2.09 billion. These results would represent year-over-year changes of +45.64% and +51.19%, respectively.

Any recent changes to analyst estimates for Enphase Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 0.32% higher within the past month. Enphase Energy is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Enphase Energy is holding a Forward P/E ratio of 55.62. Its industry sports an average Forward P/E of 38.56, so we one might conclude that Enphase Energy is trading at a premium comparatively.

Also, we should mention that ENPH has a PEG ratio of 1.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ENPH's industry had an average PEG ratio of 1.39 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 23% 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.


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