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

Enphase Energy (ENPH) closed the most recent trading day at $155.53, moving -1.53% from the previous trading session. This change lagged the S&P 500's daily gain of 0.85%.

Heading into today, shares of the solar technology company had lost 3.38% over the past month, lagging the Oils-Energy sector's gain of 0.5% and the S&P 500's loss of 0.37% in that time.

Wall Street will be looking for positivity from ENPH as it approaches its next earnings report date. In that report, analysts expect ENPH to post earnings of $0.48 per share. This would mark year-over-year growth of 60%. Our most recent consensus estimate is calling for quarterly revenue of $344.57 million, up 93.03% from the year-ago period.

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 +72.78%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for ENPH. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 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 remained stagnant. ENPH currently has a Zacks Rank of #4 (Sell).

In terms of valuation, ENPH is currently trading at a Forward P/E ratio of 75.14. This valuation marks a premium compared to its industry's average Forward P/E of 57.64.

Meanwhile, ENPH's PEG ratio is currently 2.16. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ENPH's industry had an average PEG ratio of 2.24 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 230, putting it in the bottom 10% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 Report
 
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