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Enphase Energy (ENPH) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest trading session, Enphase Energy (ENPH - Free Report) closed at $35.39, marking a -1.91% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. At the same time, the Dow added 0.18%, and the tech-heavy Nasdaq gained 0.31%.

Coming into today, shares of the solar technology company had lost 4.3% in the past month. In that same time, the Oils-Energy sector gained 0.91%, while the S&P 500 gained 3.15%.

The investment community will be closely monitoring the performance of Enphase Energy in its forthcoming earnings report. The company is expected to report EPS of $0.6, down 7.69% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $359.53 million, down 5.6% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.59 per share and a revenue of $1.45 billion, signifying shifts of +9.28% and +8.83%, respectively, from the last year.

Any recent changes to analyst estimates for Enphase Energy should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Enphase Energy is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Enphase Energy is currently being traded at a Forward P/E ratio of 13.96. This signifies a discount in comparison to the average Forward P/E of 17.09 for its industry.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 20% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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