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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 $119.15 in the latest trading session, marking a -1.61% move from the prior day. This change lagged the S&P 500's 1.47% loss on the day. At the same time, the Dow lost 1.14%, and the tech-heavy Nasdaq lost 1.57%.

Coming into today, shares of the solar technology company had lost 3.35% in the past month. In that same time, the Oils-Energy sector gained 4.06%, while the S&P 500 lost 1.43%.

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 $1.04 per share, which would represent a year-over-year decline of 16.8%. Meanwhile, our latest consensus estimate is calling for revenue of $572.59 million, down 9.79% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.01 per share and revenue of $2.67 billion, which would represent changes of +8.44% and +14.69%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Enphase Energy. Recent revisions tend to reflect the latest 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 0.89% lower within the past month. Enphase Energy is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Enphase Energy is holding a Forward P/E ratio of 24.17. This valuation marks a premium compared to its industry's average Forward P/E of 19.77.

Investors should also note that ENPH has a PEG ratio of 1.19 right now. 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 0.66 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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