Enphase Energy (ENPH) closed the most recent trading day at $279.49, moving -1.46% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.72%. At the same time, the Dow lost 1.62%, and the tech-heavy Nasdaq gained 0.01%.
Prior to today's trading, shares of the solar technology company had lost 5.4% over the past month. This has lagged the Oils-Energy sector's loss of 4.64% and was narrower than the S&P 500's loss of 9.09% in that time.
Wall Street will be looking for positivity from Enphase Energy as it approaches its next earnings report date. In that report, analysts expect Enphase Energy to post earnings of $1.07 per share. This would mark year-over-year growth of 78.33%. Our most recent consensus estimate is calling for quarterly revenue of $615.95 million, up 75.22% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.09 per share and revenue of $2.25 billion, which would represent changes of +69.71% and +63%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Enphase Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 69.36. This represents a premium compared to its industry's average Forward P/E of 50.44.
Meanwhile, ENPH's PEG ratio is currently 1.47. 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. The Solar industry currently had an average PEG ratio of 1.56 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% 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.
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