Yahoo Finance Enphase Energy (ENPH) Outpaces Stock Market Gains: What You Should Know
Enphase Energy (ENPH) closed at $205.27 in the latest trading session, marking a +0.65% move from the prior day. This move outpaced the S&P 500's daily gain of 0.57%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.33%.
Heading into today, shares of the solar technology company had lost 4.23% over the past month, lagging the Oils-Energy sector's loss of 2.71% and the S&P 500's gain of 1.72% in that time.
Wall Street will be looking for positivity from Enphase Energy as it approaches its next earnings report date. The company is expected to report EPS of $1.20, up 55.84% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $720.53 million, up 63.28% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.46 per share and revenue of $3.17 billion. These totals would mark changes of +18.18% and +35.95%, respectively, from last year.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 1.37% lower within the past month. Enphase Energy is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Enphase Energy's current valuation metrics, including its Forward P/E ratio of 37.38. This represents a premium compared to its industry's average Forward P/E of 27.47.
Also, we should mention that ENPH has a PEG ratio of 0.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Solar industry currently had an average PEG ratio of 0.74 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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
