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Enphase Energy (ENPH) Gains But Lags Market: What You Should Know

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Enphase Energy (ENPH - Free Report) closed at $36.91 in the latest trading session, marking a +0.03% move from the prior day. This move lagged the S&P 500's daily gain of 1.13%. Elsewhere, the Dow gained 1.68%, while the tech-heavy Nasdaq added 0.43%.

Coming into today, shares of the solar technology company had gained 23.04% in the past month. In that same time, the Oils-Energy sector lost 10.86%, while the S&P 500 gained 2.1%.

ENPH will be looking to display strength as it nears its next earnings release. In that report, analysts expect ENPH to post earnings of $0.33 per share. This would mark year-over-year growth of 725%. Meanwhile, our latest consensus estimate is calling for revenue of $204.76 million, up 121.86% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for ENPH. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ENPH is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, ENPH is holding a Forward P/E ratio of 36.47. Its industry sports an average Forward P/E of 21.13, so we one might conclude that ENPH is trading at a premium comparatively.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 25% 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.

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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