In the latest trading session, Enphase Energy (ENPH) closed at $112.08, reflecting an adjustment of -0.91% from the previous day’s close. The stock lagged the S&P 500, which posted a daily loss of 0.3%. Meanwhile, the Dow lost 0.54% and the Nasdaq, a tech-heavy index, gained 0.25%.
Shares of the solar technology company rose 9.37% over the past month, outperforming the Oil and Energy sector’s 0% and the S&P 500’s gain of 3.42%.
The investment community will be closely watching Enphase Energy’s performance in its upcoming earnings report. The company’s earnings per share (EPS) is estimated at $0.77, down 24.51% from the year-ago quarter. Meanwhile, our latest consensus estimate is calling for revenue of $394.6 million, down 28.39% from the year-ago quarter.
For the full year, analysts expect earnings of $2.55 per share and revenue of $1.41 billion, according to Zacks Consensus Estimates. These amounts would represent a year-over-year change of -42.18% and -38.45%, respectively.
In addition, investors should keep an eye on recent changes in analyst forecasts for Enphase Energy. Recent changes typically reflect recent near-term business trends. Positive estimate changes reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate revisions are directly correlated with future stock price movements. To capitalize on this, we have developed the Zacks Rank, a quantitative model that takes these estimate changes into account and provides a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of success. #1-ranked stocks have delivered an average annual return of +25% since 1988. Over the past month, there has been a 3.18% decrease in the Zacks Consensus EPS estimate. Currently, Enphase Energy holds a Zacks Rank of #3 (Hold).
In terms of valuation, Enphase Energy is currently trading at a P/E ratio of 44.41. This represents a premium to the industry’s average P/E ratio of 13.76.
Also, we should mention that ENPH has a PEG ratio of 2.8. The PEG ratio is similar to the widely used P/E ratio, but this metric also takes into account the company’s expected earnings growth rate. The solar industry had an average PEG ratio of 1.86 as of yesterday’s close.
The solar industry is part of the oil and energy sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Remember to use Zacks.com to track these and other metrics on stock movement during the coming trading sessions.
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Enphase Energy, Inc. (ENPH): Free Stock Analysis Report
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