Enphase Energy (ENPH - Free Report) closed at $30.20 in the latest trading session, marking a -1.92% move from the prior day. This move lagged the S&P 500's daily loss of 0.15%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.24%.
Heading into today, shares of the solar technology company had gained 19.53% over the past month, outpacing the Oils-Energy sector's gain of 4.51% and the S&P 500's gain of 3.88% in that time.
ENPH will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.33, up 725% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $204.76 million, up 121.86% from the prior-year quarter.
Any recent changes to analyst estimates for ENPH should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 has moved 1.68% higher within the past month. ENPH currently has a Zacks Rank of #2 (Buy).
In terms of valuation, ENPH is currently trading at a Forward P/E ratio of 30.43. This represents a premium compared to its industry's average Forward P/E of 20.2.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 20% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.