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Enphase Energy (ENPH) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Enphase Energy (ENPH - Free Report) closed at $32.86, marking a -0.48% move from the previous day. This move lagged the S&P 500's daily gain of 9.28%. At the same time, the Dow added 9.36%, and the tech-heavy Nasdaq gained 9.34%.

Prior to today's trading, shares of the solar technology company had lost 20.13% over the past month. This has was narrower than the Oils-Energy sector's loss of 44.89% and the S&P 500's loss of 26.56% in that time.

ENPH will be looking to display strength as it nears its next earnings release. On that day, ENPH is projected to report earnings of $0.32 per share, which would represent year-over-year growth of 300%. Our most recent consensus estimate is calling for quarterly revenue of $205.70 million, up 105.39% from the year-ago period.

ENPH's full-year Zacks Consensus Estimates are calling for earnings of $1.27 per share and revenue of $881.60 million. These results would represent year-over-year changes of +33.68% and +41.21%, respectively.

It is also important to note the recent changes to analyst estimates for ENPH. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 20.25% higher. ENPH is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, ENPH is currently trading at a Forward P/E ratio of 26. Its industry sports an average Forward P/E of 14.05, 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 33, which puts it in the top 13% 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.


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