Enphase Energy (ENPH) Rises Higher Than Market: Key Facts

The latest trading session saw Enphase Energy (ENPH) ending at $39.24, denoting a 0.72% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq gained 0.39%.

The the stock of solar technology company has fallen by 12.63% in the past month, lagging the Oils-Energy sector's gain of 1.59% and the S&P 500's gain of 6.69%.

Analysts and investors alike will be keeping a close eye on the performance of Enphase Energy in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.62, marking a 44.19% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $356.23 million, showing a 17.39% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.42 per share and revenue of $1.43 billion, which would represent changes of 2.11% and 7.3%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Enphase Energy. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of 25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.05% downward. Enphase Energy presently features a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Enphase Energy is currently trading at a Forward P/E ratio of 16.1. This expresses a premium compared to the average Forward P/E of 14.42 of its industry.

The Solar industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 171, this industry ranks in the bottom 31% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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