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Enphase Energy (ENPH) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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Enphase Energy (ENPH - Free Report) closed the latest trading day at $73.28, indicating a +0.38% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 1.1%. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 1.35%.

The solar technology company's stock has climbed by 1.52% in the past month, exceeding the Oils-Energy sector's loss of 10.32% and the S&P 500's gain of 0.22%.

The investment community will be closely monitoring the performance of Enphase Energy in its forthcoming earnings report. On that day, Enphase Energy is projected to report earnings of $0.75 per share, which would represent year-over-year growth of 38.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $376.7 million, up 24.5% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.21 per share and a revenue of $1.33 billion, signifying shifts of -49.89% and -42.06%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Enphase Energy. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.46% fall in the Zacks Consensus EPS estimate. Currently, Enphase Energy is carrying a Zacks Rank of #3 (Hold).

Investors should also note Enphase Energy's current valuation metrics, including its Forward P/E ratio of 33. For comparison, its industry has an average Forward P/E of 15.67, which means Enphase Energy is trading at a premium to the group.

Meanwhile, ENPH's PEG ratio is currently 9.24. 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. By the end of yesterday's trading, the Solar industry had an average PEG ratio of 0.84.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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