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

Zacks Equity Research

In the latest trading session, Enphase Energy (ENPH) closed at $37.21, marking a -1.38% move from the previous day. This move lagged the S&P 500's daily gain of 1.47%. Elsewhere, the Dow gained 1.51%, while the tech-heavy Nasdaq added 1.11%.

Heading into today, shares of the solar technology company had gained 4.43% over the past month, lagging the Oils-Energy sector's gain of 17.95% and the S&P 500's gain of 16.09% in that time.

Investors will be hoping for strength from ENPH as it approaches its next earnings release, which is expected to be May 5, 2020. On that day, ENPH is projected to report earnings of $0.33 per share, which would represent year-over-year growth of 312.5%. Meanwhile, our latest consensus estimate is calling for revenue of $204.27 million, up 103.97% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.14 per share and revenue of $833.47 million, which would represent changes of +20% and +33.5%, respectively, from the prior year.

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Any recent changes to analyst estimates for ENPH should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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 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. The Zacks Consensus EPS estimate has moved 16.46% lower within the past month. ENPH is currently a Zacks Rank #3 (Hold).

In terms of valuation, ENPH is currently trading at a Forward P/E ratio of 33.15. For comparison, its industry has an average Forward P/E of 17.05, which means ENPH is trading at a premium to the group.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report
 
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