In the latest trading session, Enphase Energy (ENPH) closed at $41.34, marking a -0.39% move from the previous day. This move lagged the S&P 500's daily loss of 0.16%. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq lost 0.14%.
Prior to today's trading, shares of the solar technology company had gained 37.6% over the past month. This has outpaced the Oils-Energy sector's loss of 7.63% and the S&P 500's gain of 3.63% in that time.
Wall Street will be looking for positivity from ENPH as it approaches its next earnings report date. This is expected to be February 18, 2020. The company is expected to report EPS of $0.33, up 725% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $204.76 million, up 121.86% from the year-ago period.
Investors might also notice recent changes to analyst estimates for ENPH. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.86% higher. ENPH is currently a Zacks Rank #2 (Buy).
In terms of valuation, ENPH is currently trading at a Forward P/E ratio of 41.02. This represents a premium compared to its industry's average Forward P/E of 21.92.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 39% 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.
To follow ENPH in the coming trading sessions, be sure to utilize Zacks.com.