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Enphase Energy (ENPH) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Enphase Energy (ENPH - Free Report) closed at $37.36 in the latest trading session, marking a -7.75% move from the prior day. This change lagged the S&P 500's daily loss of 0.55%. On the other hand, the Dow registered a loss of 0.19%, and the technology-centric Nasdaq decreased by 0.95%.

The solar technology company's shares have seen an increase of 5.94% over the last month, surpassing the Oils-Energy sector's gain of 1.1% and the S&P 500's gain of 3.64%.

Analysts and investors alike will be keeping a close eye on the performance of Enphase Energy in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.6, reflecting a 7.69% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $359.53 million, down 5.6% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.59 per share and revenue of $1.45 billion, indicating changes of +9.28% and +8.83%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Enphase Energy. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Enphase Energy holds a Zacks Rank of #3 (Hold).

Looking at valuation, Enphase Energy is presently trading at a Forward P/E ratio of 15.67. This indicates a discount in contrast to its industry's Forward P/E of 17.09.

The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 43, placing it within the top 18% of over 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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