Enphase Energy (ENPH) closed the most recent trading day at $35.36, moving -2.13% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.26%. On the other hand, the Dow registered a gain of 0.6%, and the technology-centric Nasdaq increased by 0.25%.
The solar technology company's shares have seen an increase of 14.3% over the last month, surpassing the Oils-Energy sector's gain of 3.32% and the S&P 500's gain of 1.57%.
The investment community will be closely monitoring the performance of Enphase Energy in its forthcoming earnings report. The company's upcoming EPS is projected at $0.53, signifying a 43.62% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $334.12 million, indicating a 12.7% 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 $2.78 per share and revenue of $1.46 billion. These totals would mark changes of +17.3% and 0%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Enphase Energy. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 moved 7.01% lower. Enphase Energy currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Enphase Energy currently has a Forward P/E ratio of 17.71. Its industry sports an average Forward P/E of 22.73, 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 23, this industry ranks in the top 10% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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