Enphase Energy (ENPH) Stock Sinks As Market Gains: What You Should Know
The latest trading session saw Enphase Energy (ENPH) ending at $106.83, denoting a -1.15% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.53% for the day. Meanwhile, the Dow experienced a rise of 0.64%, and the technology-dominated Nasdaq saw an increase of 0.19%.
Shares of the solar technology company witnessed a loss of 20.32% over the previous month, trailing the performance of the Oils-Energy sector with its loss of 4.39% and the S&P 500's gain of 2.48%.
Market participants will be closely following the financial results of Enphase Energy in its upcoming release. The company plans to announce its earnings on February 6, 2024. It is anticipated that the company will report an EPS of $0.55, marking a 63.58% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $326.17 million, indicating a 54.99% decline compared to the corresponding quarter of the prior year.
Investors should also pay attention to any latest changes in 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.95% increase. At present, Enphase Energy boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Enphase Energy is presently being traded at a Forward P/E ratio of 27.6. This denotes a premium relative to the industry's average Forward P/E of 11.28.
We can additionally observe that ENPH currently boasts a PEG ratio of 1.51. 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 average PEG ratio for the Solar industry stood at 1.04 at the close of the market yesterday.
The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 219, placing it within the bottom 14% of over 250 industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report
