Back to top

Image: Bigstock

Enphase Energy (ENPH) Stock Dips While Market Gains: Key Facts

Read MoreHide Full Article

The most recent trading session ended with Enphase Energy (ENPH - Free Report) standing at $105.95, reflecting a -0.79% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.9%. Meanwhile, the Dow experienced a rise of 0.81%, and the technology-dominated Nasdaq saw an increase of 1.22%.

Shares of the solar technology company have depreciated by 4.72% over the course of the past month, underperforming the Oils-Energy sector's gain of 5.22% and the S&P 500's gain of 3.15%.

The upcoming earnings release of Enphase Energy will be of great interest to investors. On that day, Enphase Energy is projected to report earnings of $0.77 per share, which would represent a year-over-year decline of 24.51%. Meanwhile, the latest consensus estimate predicts the revenue to be $393.77 million, indicating a 28.55% decrease compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.54 per share and revenue of $1.41 billion. These totals would mark changes of -42.4% and -38.66%, respectively, from last year.

Any recent changes to analyst estimates for Enphase Energy should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.37% decrease. Enphase Energy presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Enphase Energy is holding a Forward P/E ratio of 42.12. This indicates a premium in contrast to its industry's Forward P/E of 13.71.

Investors should also note that ENPH has a PEG ratio of 2.66 right now. 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. As of the close of trade yesterday, the Solar industry held an average PEG ratio of 1.81.

The Solar industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 151, finds itself in the bottom 41% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Enphase Energy, Inc. (ENPH) - free report >>

Published in