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Here's Why Enphase Energy (ENPH) Gained But Lagged the Market Today

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Enphase Energy (ENPH - Free Report) closed at $91.64 in the latest trading session, marking a +0.08% move from the prior day. This move lagged the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.63%.

Prior to today's trading, shares of the solar technology company had lost 21.98% over the past month. This has lagged the Oils-Energy sector's loss of 7.82% and the S&P 500's gain of 3.76% in that time.

The upcoming earnings release of Enphase Energy will be of great interest to investors. The company's earnings report is expected on October 22, 2024. The company is predicted to post an EPS of $0.77, indicating a 24.51% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $391.5 million, down 28.96% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $2.52 per share and a revenue of $1.4 billion, demonstrating changes of -42.86% and -38.89%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Enphase Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 1.47% lower within the past month. Right now, Enphase Energy possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Enphase Energy is holding a Forward P/E ratio of 36.39. This represents a premium compared to its industry's average Forward P/E of 13.22.

We can also see that ENPH currently has a PEG ratio of 3.76. 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 was holding an average PEG ratio of 1.1 at yesterday's closing price.

The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 152, positioning it in the bottom 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.

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


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