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Enphase Energy (ENPH) Registers a Bigger Fall Than the Market: Important Facts to Note

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Enphase Energy (ENPH - Free Report) closed at $35.85 in the latest trading session, marking a -1.46% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.22%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.51%.

Prior to today's trading, shares of the solar technology company had lost 4.28% lagged the Oils-Energy sector's gain of 5.72% and the S&P 500's gain of 0.45%.

Market participants will be closely following the financial results of Enphase Energy in its upcoming release. The company is forecasted to report an EPS of $0.62, showcasing a 44.19% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $355.7 million, up 17.21% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.44 per share and a revenue of $1.43 billion, signifying shifts of +2.95% and +7.24%, respectively, from the last year.

Investors should also pay attention to any latest changes in 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 business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. Enphase Energy is currently sporting a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Enphase Energy is presently being traded at a Forward P/E ratio of 14.93. This denotes no noticeable deviation relative to the industry average Forward P/E of 14.93.

The Solar industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 181, this industry ranks in the bottom 27% of all industries, numbering over 250.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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