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

Enphase Energy (ENPH) closed at $154.29 in the latest trading session, marking a +1.21% move from the prior day. This move outpaced the S&P 500's daily loss of 0.08%.

Coming into today, shares of the solar technology company had lost 11.5% in the past month. In that same time, the Oils-Energy sector gained 4.34%, while the S&P 500 lost 1.81%.

ENPH will be looking to display strength as it nears its next earnings release. In that report, analysts expect ENPH to post earnings of $0.48 per share. This would mark year-over-year growth of 60%. Meanwhile, our latest consensus estimate is calling for revenue of $344.59 million, up 93.05% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.10 per share and revenue of $1.34 billion. These totals would mark changes of +53.28% and +72.73%, respectively, from last year.

Any recent changes to analyst estimates for ENPH should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has moved 0.09% lower. ENPH is currently sporting a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that ENPH has a Forward P/E ratio of 72.55 right now. This valuation marks a premium compared to its industry's average Forward P/E of 56.3.

Meanwhile, ENPH's PEG ratio is currently 2.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Solar was holding an average PEG ratio of 2.08 at yesterday's closing price.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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