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

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Enphase Energy (ENPH) closed at $179.80 in the latest trading session, marking a -0.17% move from the prior day. This move lagged the S&P 500's daily gain of 0.3%.

Prior to today's trading, shares of the solar technology company had gained 13.84% over the past month. This has lagged the Oils-Energy sector's gain of 19.01% and outpaced the S&P 500's gain of 4.28% in that time.

Investors will be hoping for strength from ENPH as it approaches its next earnings release, which is expected to be October 26, 2021. 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 $345.52 million, up 93.57% from the year-ago period.

ENPH's full-year Zacks Consensus Estimates are calling for earnings of $2.10 per share and revenue of $1.34 billion. These results would represent year-over-year changes of +53.28% and +73.02%, respectively.

It is also important to note the recent changes to analyst estimates for ENPH. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% lower. ENPH is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, ENPH currently has a Forward P/E ratio of 85.81. This represents a premium compared to its industry's average Forward P/E of 70.88.

Also, we should mention that ENPH has a PEG ratio of 2.47. 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. Solar stocks are, on average, holding a PEG ratio of 2.47 based on yesterday's closing prices.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 225, which puts it in the bottom 12% 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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