Enphase Energy (ENPH) closed at $34.75 in the latest trading session, marking a +2.21% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.62% for the day. On the other hand, the Dow registered a gain of 0.99%, and the technology-centric Nasdaq increased by 0.65%.
The solar technology company's shares have seen an increase of 8.83% over the last month, surpassing the Oils-Energy sector's gain of 0.26% and the S&P 500's gain of 0.59%.
The investment community will be paying close attention to the earnings performance of Enphase Energy in its upcoming release. The company's earnings per share (EPS) are projected to be $0.53, reflecting a 43.62% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $331.97 million, indicating a 13.26% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.74 per share and a revenue of $1.46 billion, representing changes of +15.61% and 0%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Enphase Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.52% lower. Enphase Energy is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, Enphase Energy is currently exchanging hands at a Forward P/E ratio of 16.16. Its industry sports an average Forward P/E of 19.41, so one might conclude that Enphase Energy is trading at a discount comparatively.
The Solar industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 25% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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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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