Enphase Energy (ENPH) closed at $32.18 in the latest trading session, marking a -2.51% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 1.07%. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq lost 1.69%.
The stock of solar technology company has risen by 14.18% in the past month, leading the Oils-Energy sector's loss of 0.33% and the S&P 500's gain of 0.94%.
Analysts and investors alike will be keeping a close eye on the performance of Enphase Energy in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.56, reflecting a 40.43% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $331.97 million, down 13.26% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.79 per share and a revenue of $1.46 billion, indicating changes of +17.72% and +9.44%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Enphase Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business 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, 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Enphase Energy is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Enphase Energy has a Forward P/E ratio of 11.84 right now. Its industry sports an average Forward P/E of 17.55, so one might conclude that Enphase Energy is trading at a discount comparatively.
The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Enphase Energy, Inc. (ENPH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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