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

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Enphase Energy (ENPH) closed the most recent trading day at $142.84, moving -0.45% from the previous trading session. This change lagged the S&P 500's 0.08% gain on the day. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 0.42%.

Coming into today, shares of the solar technology company had lost 24.82% in the past month. In that same time, the Oils-Energy sector gained 10.22%, while the S&P 500 gained 0.22%.

Investors will be hoping for strength from Enphase Energy as it approaches its next earnings release. On that day, Enphase Energy is projected to report earnings of $0.58 per share, which would represent year-over-year growth of 13.73%. Our most recent consensus estimate is calling for quarterly revenue of $403.1 million, up 52.21% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Enphase Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate has moved 0.4% higher within the past month. Enphase Energy is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Enphase Energy currently has a Forward P/E ratio of 46.21. This represents a premium compared to its industry's average Forward P/E of 39.13.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 26% 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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