In the latest trading session, Enphase Energy (ENPH) closed at $318.01, marking a +1.87% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.72%. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.27%.
Heading into today, shares of the solar technology company had gained 6.18% over the past month, outpacing the Oils-Energy sector's gain of 1.38% and the S&P 500's loss of 9.06% in that time.
Investors will be hoping for strength from Enphase Energy as it approaches its next earnings release. The company is expected to report EPS of $1.07, up 78.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $615.95 million, up 75.22% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.09 per share and revenue of $2.25 billion. These totals would mark changes of +69.71% and +63%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Enphase Energy. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Enphase Energy is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Enphase Energy currently has a Forward P/E ratio of 76.34. Its industry sports an average Forward P/E of 59.32, so we one might conclude that Enphase Energy is trading at a premium comparatively.
It is also worth noting that ENPH currently has a PEG ratio of 1.62. 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 was holding an average PEG ratio of 1.76 at yesterday's closing price.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report
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