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Enphase Energy (ENPH) Laps the Stock Market: Here's Why

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Enphase Energy (ENPH - Free Report) closed at $34.82 in the latest trading session, marking a +1.6% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 1.56% for the day. Elsewhere, the Dow saw an upswing of 1.29%, while the tech-heavy Nasdaq appreciated by 2.21%.

The solar technology company's stock has dropped by 8.93% in the past month, falling short of the Oils-Energy sector's loss of 2.93% and the S&P 500's gain of 0.41%.

The investment community will be closely monitoring the performance of Enphase Energy in its forthcoming earnings report. The company is scheduled to release its earnings on October 28, 2025. In that report, analysts expect Enphase Energy to post earnings of $0.61 per share. This would mark a year-over-year decline of 6.15%. At the same time, our most recent consensus estimate is projecting a revenue of $359.39 million, reflecting a 5.64% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $2.63 per share and a revenue of $1.45 billion, demonstrating changes of +10.97% and +8.74%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Enphase Energy. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.26% higher. Currently, Enphase Energy is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Enphase Energy is currently exchanging hands at a Forward P/E ratio of 13.02. For comparison, its industry has an average Forward P/E of 16.67, which means Enphase Energy is trading at a discount to the group.

The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 38% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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