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Here's Why You Should Add Enphase Energy (ENPH) Stock Now

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Enphase Energy, Inc.’s (ENPH - Free Report) microinverter system as well as its proprietary networking and software technologies are expected to boost growth.    

Earnings estimates for the company have been revised upward in the past 60 days, reflecting analyst’s optimism in the stock. The Zacks Consensus Estimate for 2019 and 2020 earnings moved up 52% and 40% to 79 cents and 98 cents, respectively.

Let’s focus on the factors that make Enphase Energy a profitable bet for greater returns.

Zacks Rank & Earnings Surprise History

The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Enphase Energy’s average four-quarter positive earnings surprise is at 16.28%.

Price Performance



The company’s shares have surged 427.9% in a year’s time compared with the industry’s growth of 40.4%.

Return on Equity (ROE)

ROE is a measure of a company’s efficiency in utilizing shareholders’ funds. The company’s ROE for the trailing 12 months is 31.17%, higher than the Zacks S&P 500 composites’ ROE of 17.31%.

Enphase’s Microinverter System

The Enphase IQ Microinverter is a key component of the Enphase Home Energy Solution. It helps to simplify the solar installations by providing a complete alternating current (AC) solution that uses no high-voltage direct current (DC). It provides a safe solar solution for homeowners, who can also use Enphase Enlighten to monitor their home’s solar generation, energy storage and consumption from any web-enabled device. The company has shipped more than 21 million microinverters as well as more than 940,000 Enphase residential and commercial systems to 130 countries.

Key Picks

Some other top-ranked stocks from the same sector are Canadian Solar Inc (CSIQ - Free Report) , SolarEdge Technologies, Inc (SEDG - Free Report) and Ameresco, Inc (AMRC - Free Report) . All stocks sport a Zacks Rank #1.

Canadian Solar, SolarEdge Technologies and Ameresco delivered average positive earnings surprise of 115.66%, 1.23% and 21.75% in the last four quarters, respectively.

The Zacks Consensus Estimate for Canadian Solar, SolarEdge Technologies and Ameresco for 2019 has moved up 32.6%, 21.4% and 2.6% in the past 60 days, respectively.

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