Is Enphase Energy a Buy?
Renewable power is displacing older technologies in the electricity market, and it's a trend that has a long way to go. Because Enphase Energy (NASDAQ: ENPH) supplies key technology to the solar panel industry, it's no doubt poised for a bright future. But a great business isn't always a great stock. Here's what you need to know to decide if Enphase Energy is a buy today.
Enphase isn't exactly a front-line name in the solar industry. The microinverters it makes are just one, albeit extremely vital, part of the final product. However, as one of the largest suppliers of microinverters in the world, it plays a big role in the solar panel space. There's huge growth ahead for the industry as a whole. The U.S. Energy Information Administration (EIA), for example, projects that solar's share of the U.S. renewable power space will expand from 13% in 2018 to nearly 50% by 2050, surpassing all other renewable energy sources as renewable power's share of the overall grid expands from 18% to 31%. These are just the projections for the U.S. grid, and this trend is a worldwide phenomenon.
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