In the latest trading session, Enphase Energy (ENPH - Free Report) closed at $22.23, marking a -0.11% move from the previous day. This change lagged the S&P 500's 0.51% gain on the day. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.75%.
Coming into today, shares of the solar technology company had lost 28.56% in the past month. In that same time, the Oils-Energy sector gained 8.26%, while the S&P 500 gained 3.44%.
ENPH will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.13, up 225% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $176.47 million, up 126.24% from the prior-year quarter.
ENPH's full-year Zacks Consensus Estimates are calling for earnings of $0.79 per share and revenue of $603.28 million. These results would represent year-over-year changes of +690% and +90.82%, respectively.
Any recent changes to analyst estimates for ENPH should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.18% higher. ENPH currently has a Zacks Rank of #2 (Buy).
Digging into valuation, ENPH currently has a Forward P/E ratio of 28.11. Its industry sports an average Forward P/E of 22.8, so we one might conclude that ENPH is trading at a premium comparatively.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.