Enphase Energy (ENPH - Free Report) closed at $17.33 in the latest trading session, marking a -1.03% move from the prior day. This change lagged the S&P 500's daily loss of 0.16%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.52%.
Heading into today, shares of the solar technology company had gained 18.15% over the past month, outpacing the Oils-Energy sector's loss of 1.14% and the S&P 500's gain of 3.12% in that time.
ENPH will be looking to display strength as it nears its next earnings release. On that day, ENPH is projected to report earnings of $0.14 per share, which would represent year-over-year growth of 600%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $121.19 million, up 59.67% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.52 per share and revenue of $483.76 million, which would represent changes of +420% and +53.01%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ENPH. 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 company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ENPH is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, ENPH is currently trading at a Forward P/E ratio of 33.67. This valuation marks a premium compared to its industry's average Forward P/E of 17.86.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% 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.
To follow ENPH in the coming trading sessions, be sure to utilize Zacks.com.