Enphase Energy (ENPH) shares rallied 12.5% in the last trading session to close at $40.48. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.5% gain over the past four weeks.
Enphase Energy is benefiting from strong demand in the global solar market, supported by its leading position in microinverter technology. The company continues to see healthy shipment growth and is expanding its presence across multiple international markets through new product introductions. Ongoing innovation in high-efficiency microinverters for residential and commercial use is strengthening Enphase’s long-term growth outlook.
The stock has also been supported by Enphase’s solid financial position. The company holds cash levels that exceed its total debt and has shown improving liquidity and interest coverage ratios. This financial strength allows Enphase to invest in growth while continuing share repurchases, which has helped support positive investor sentiment.
This solar technology company is expected to post quarterly earnings of $0.53 per share in its upcoming report, which represents a year-over-year change of -43.6%. Revenues are expected to be $334.12 million, down 12.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Enphase Energy, the consensus EPS estimate for the quarter has been revised 28.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ENPH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Enphase Energy is a member of the Zacks Solar industry. One other stock in the same industry, Tigo Energy, Inc. (TYGO), finished the last trading session 0.6% lower at $3.44. TYGO has returned 123.2% over the past month.
For Tigo Energy, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.04. This represents a change of +90.9% from what the company reported a year ago. Tigo Energy, Inc. currently has a Zacks Rank of #3 (Hold).
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Enphase Energy, Inc. (ENPH): Free Stock Analysis Report Tigo Energy, Inc. (TYGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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