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

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Zacks Equity Research
·3 min read
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Enphase Energy (ENPH) closed at $196.34 in the latest trading session, marking a +1.93% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.1%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Wall Street will be looking for positivity from ENPH as it approaches its next earnings report date. This is expected to be February 9, 2021. In that report, analysts expect ENPH to post earnings of $0.40 per share. This would mark year-over-year growth of 2.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $256.27 million, up 22.01% from the year-ago period.

Any recent changes to analyst estimates for ENPH should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate has moved 5.57% higher within the past month. ENPH currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, ENPH is holding a Forward P/E ratio of 99.49. Its industry sports an average Forward P/E of 65.64, so we one might conclude that ENPH is trading at a premium comparatively.

Also, we should mention that ENPH has a PEG ratio of 2.64. 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. Solar stocks are, on average, holding a PEG ratio of 2.13 based on yesterday's closing prices.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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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