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Why the Market Dipped But Enphase Energy (ENPH) Gained Today

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The most recent trading session ended with Enphase Energy (ENPH - Free Report) standing at $120.78, reflecting a +1.84% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 1.23%. On the other hand, the Dow registered a loss of 1.36%, and the technology-centric Nasdaq decreased by 1.4%.

The the stock of solar technology company has fallen by 5.39% in the past month, lagging the Oils-Energy sector's gain of 9.61% and the S&P 500's gain of 1.61%.

Investors will be eagerly watching for the performance of Enphase Energy in its upcoming earnings disclosure. In that report, analysts expect Enphase Energy to post earnings of $0.40 per share. This would mark a year-over-year decline of 70.8%. Meanwhile, our latest consensus estimate is calling for revenue of $279.38 million, down 61.52% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.36 per share and a revenue of $1.65 billion, representing changes of -23.81% and -27.88%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Enphase Energy. 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.16% downward. Enphase Energy is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Enphase Energy has a Forward P/E ratio of 35.25 right now. This represents a premium compared to its industry's average Forward P/E of 12.62.

Also, we should mention that ENPH has a PEG ratio of 2.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Solar industry had an average PEG ratio of 0.46.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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