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Enphase Energy (ENPH) closed the most recent trading day at $115, moving +1.22% from the previous trading session. This move outpaced the S&P 500’s daily loss of 0.13%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 0.39%.
The the stock of solar technology company has fallen by 6.34% in the past month, lagging the Oils-Energy sector’s loss of 4.69% and the S&P 500’s gain of 2.43%.
The investment community will be paying close attention to the earnings performance of Enphase Energy in its upcoming release. It is anticipated that the company will report an EPS of $0.77, marking a 24.51% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $394.17 million, showing a 28.47% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.54 per share and a revenue of $1.41 billion, signifying shifts of -42.4% and -38.63%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Enphase Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.1% lower. As of now, Enphase Energy holds a Zacks Rank of #3 (Hold).
Digging into valuation, Enphase Energy currently has a Forward P/E ratio of 44.81. Its industry sports an average Forward P/E of 15.31, so one might conclude that Enphase Energy is trading at a premium comparatively.
We can additionally observe that ENPH currently boasts a PEG ratio of 2.83. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Solar industry had an average PEG ratio of 1.9 as trading concluded yesterday.
The Solar industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 167, this industry ranks in the bottom 34% of all industries, numbering over 250.
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.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report
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