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Enphase Energy (ENPH) Stock Sinks As Market Gains: Here's Why

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Enphase Energy (ENPH - Free Report) closed at $43.16 in the latest trading session, marking a -1.35% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.01%. On the other hand, the Dow registered a loss of 0.22%, and the technology-centric Nasdaq increased by 0.32%.

The solar technology company's stock has dropped by 0.27% in the past month, falling short of the Oils-Energy sector's gain of 4.32% and the S&P 500's gain of 5.2%.

The investment community will be closely monitoring the performance of Enphase Energy in its forthcoming earnings report. The company's upcoming EPS is projected at $0.62, signifying a 44.19% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $355.7 million, up 17.21% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.41 per share and a revenue of $1.43 billion, indicating changes of +1.69% and +7.24%, respectively, from the former year.

Any recent changes to analyst estimates for Enphase Energy should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.31% lower. Enphase Energy is holding a Zacks Rank of #5 (Strong Sell) right now.

Looking at its valuation, Enphase Energy is holding a Forward P/E ratio of 18.13. This indicates a premium in contrast to its industry's Forward P/E of 15.01.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 31% 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.

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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