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Enphase Energy (ENPH) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Enphase Energy (ENPH) closed at $178.18, marking a -0.42% move from the previous day. This change lagged the S&P 500's daily gain of 1.02%.

Coming into today, shares of the solar technology company had gained 4.78% in the past month. In that same time, the Oils-Energy sector lost 8.32%, while the S&P 500 gained 3.01%.

ENPH will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2021. In that report, analysts expect ENPH to post earnings of $0.42 per share. This would mark year-over-year growth of 147.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $313.76 million, up 149.93% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.98 per share and revenue of $1.33 billion, which would represent changes of +44.53% and +71.21%, respectively, from the prior year.

Any recent changes to analyst estimates for ENPH should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 1.72% lower. ENPH currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, ENPH is holding a Forward P/E ratio of 90.6. This valuation marks a premium compared to its industry's average Forward P/E of 54.95.

Investors should also note that ENPH has a PEG ratio of 2.75 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Solar industry currently had an average PEG ratio of 2.75 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 239, which puts it in the bottom 6% 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% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ENPH in the coming trading sessions, be sure to utilize Zacks.com.


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Enphase Energy, Inc. (ENPH): Free Stock Analysis Report
 
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