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Enphase Energy (ENPH) Stock Slides as Market Rises: Facts to Know Before You Trade

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The most recent trading session ended with Enphase Energy (ENPH - Free Report) standing at $63.71, reflecting a -1.73% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.01%. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq gained 0.26%.

Coming into today, shares of the solar technology company had gained 4.16% in the past month. In that same time, the Oils-Energy sector lost 4.3%, while the S&P 500 lost 2.26%.

Market participants will be closely following the financial results of Enphase Energy in its upcoming release. The company's earnings per share (EPS) are projected to be $0.70, reflecting a 100% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $359.43 million, indicating a 36.49% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.38 per share and a revenue of $1.55 billion, indicating changes of +42.62% and +16.72%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Enphase Energy. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.57% decrease. Enphase Energy presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Enphase Energy is currently exchanging hands at a Forward P/E ratio of 19.18. For comparison, its industry has an average Forward P/E of 9.53, which means Enphase Energy is trading at a premium to the group.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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