U.S. Markets closed

Why Enphase Energy's Shares Popped 13% Today

Travis Hoium, The Motley Fool

What happened 

Shares of inverter manufacturer Enphase Energy (NASDAQ: ENPH) jumped as much as 13.4% in trading Tuesday after getting a buy rating from an analyst. Shares settled slightly lower as the day went on, but were still up 9.3% at 1:35 p.m. EDT.

So what

Analysts at B. Riley FBR initiated coverage on Enphase Energy with a buy rating and a $6 per share price target. As of yesterday's close, the price target implies 22% upside for the stock, usually projected over the next year.

A worker installs a rooftop solar-power system.

Image source: Getty Images.

Incidentally, shares also hit a new 52-week high today, making a massive recovery from when they traded at $0.65 per share. And Wall Street is clearly buying into the recovery thesis.

Now what

Analyst upgrades can move stocks short term, but long term they don't have any impact on the fundamentals that will drive a business. Instead, Enphase's recovery will be driven by growth on the top and the bottom lines, where we're starting to see some momentum. In the fourth quarter of 2017 revenue was down 12.1% to $79.7 million but did hit the high end of guidance. Net loss was $2.9 million, but that was a big improvement from a $13.2 million loss a year ago.

If Enphase Energy's financial recovery continues, the stock could continue its march higher. But I wouldn't be a buyer of the stock on today's analyst upgrade because the pop in the stock could fade as the euphoria of today wears off for traders.

More From The Motley Fool

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

  • Finance
    CNBC

    Morgan Stanley: The stock sell-off is going to get worse

    The stock market is in the middle of a rolling bear market, says Morgan Stanley's Mike Wilson. "It's being caused by a drain in liquidity and peaking growth," Wilson says. The stock market sell-off is only going to get worse, predicts Morgan Stanley's chief U.S. equity strategist, Mike Wilson.

  • Why Marijuana Stocks Canopy Growth, Cronos Group, and Tilray Crushed It Today
    Business
    Motley Fool

    Why Marijuana Stocks Canopy Growth, Cronos Group, and Tilray Crushed It Today

    The three Canadian marijuana stocks that currently trade on major U.S. stock exchanges enjoyed big gains on Monday. Shares of Canopy Growth (NYSE: CGC) were up 14% as of 3:48 p.m. EDT, while Cronos Group (NASDAQ: CRON) and Tilray (NASDAQ: TLRY) jumped 18.9% and 12.1%, respectively. Two of the three marijuana growers reported new developments earlier in the day.

  • These are the bad things about early retirement that no one talks about
    News
    MarketWatch

    These are the bad things about early retirement that no one talks about

    For all the glamour of living an early retirement lifestyle, there are plenty of negatives I’ve come to discover since I permanently left my job in 2012. As a result, you’re repeatedly forced to will yourself into action.

  • Business
    Motley Fool

    Howard Marks: Why the Word "When" Is Dangerous

    Marks' memos, which he has written since 1990, have long been priority reading for some of the best investors in the world -- Warren Buffett has famously said that whenever he sees one in his inbox, that's what he reads first. In 2011, Marks released his first book, The Most Important Thing, which, in direct contradiction with the title, listed 20 things to which the successful investor ought to pay attention.

  • Finance
    CNBC

    Cramer's lightning round: Cisco's stock is a buy ahead of the company's earnings report

    It's that time again! "Mad Money" host Jim Cramer rang the lightning round bell, which means he gave his take on callers' favorite stocks at rapid speed. Cisco Systems Inc. CSCO : "Yeah, I would [buy ahead of earnings next week]. I think the stock is

  • Goldman Sachs and Raymond James cut Netflix price target ahead of earnings
    Business
    Yahoo Finance Video

    Goldman Sachs and Raymond James cut Netflix price target ahead of earnings

    Netflix getting its price target slashed by both Goldman Sachs and Raymond James ahead of its highly expected earnings report tomorrow. Both firms are concerned that rising interest rates could pinch the company’s valuation.

  • Sears bankruptcy could make these 5 big companies multi-million-dollar losers
    Finance
    Yahoo Finance

    Sears bankruptcy could make these 5 big companies multi-million-dollar losers

    Being an unsecured creditor of Sears (SHLD) right now is not a good place to be. The 125-year old former retail icon filed for chapter 11 bankruptcy protection early on Monday, crippled from years of losses and mounting debt. Sears plans to close about

  • Brits Are All Making the Same Joke About the New Royal Baby
    News
    Time

    Brits Are All Making the Same Joke About the New Royal Baby

    Meghan Markle, the Duchess of Sussex, is expecting her first child with Prince Harry. The news, announced Monday morning by Kensington Palace, has already been greeted by hundreds of messages of congratulations for the royal couple on social media. The U.K. is set to leave the European Union on March 29, exactly two years after Prime Minister Theresa May started the formal process for doing so by invoking Article 50 of the Lisbon Treaty.

  • Why New Age Beverage Corp. Stock Popped Today
    Business
    Motley Fool

    Why New Age Beverage Corp. Stock Popped Today

    Shares of New Age Beverage Corp. (NASDAQ: NBEV) were climbing again today, riding a surge on marijuana stocks as growers like Tilray, Cronos Group, and Canopy Growth all jumped by double digits. Along with the bullish sentiment in the industry, a number of other factors seemed to be driving New Age shares higher, including the recent hiring of a new CFO, the upcoming legalization of recreational marijuana in Canada on Wednesday, and the market's reaction to its launch last week of a new line of beverages infused with cannabidiol (CBD). On Friday, New Age named Gregory Gould as its new CFO, a notable move as Gould brings experience from the pharmaceutical industry, which should help the beverage company as it moves into CBD products.

  • Elizabeth Warren Calls on Trump to Pay $1 Million After Releasing DNA Test
    Politics
    Fortune

    Elizabeth Warren Calls on Trump to Pay $1 Million After Releasing DNA Test

    Elizabeth Warren is ready for her pay day. The senator from Massachusetts took to Twitter Monday morning, calling on President Donald Trump to cough up the $1 million he promised if she proved she had Native American heritage.

  • After years of wasting time in meetings, 3 former Googlers decided to do things differently at their new startup
    Business
    Business Insider

    After years of wasting time in meetings, 3 former Googlers decided to do things differently at their new startup

    The executives of the startup Beeswax, all former Google execs, say they've learned how to keep meetings streamlined and efficient. The three founders of the ad-tech startup Beeswax seem to get that. "We're all thoughtful about not having a proliferation of meetings, because one thing we all felt in our previous careers is that there can be lots of redundant meetings," Shamim Samadi, Beeswax's chief product officer, told Business Insider.

  • USAF quiet on delivery schedule for Boeing KC-46 tanker to Wichita
    Business
    American City Business Journals

    USAF quiet on delivery schedule for Boeing KC-46 tanker to Wichita

    With the month now half over, it appears less and less likely that McConnell Air Force Base in Wichita will receive its first KC-46 tanker from the Boeing Co. in October as previously hoped.  Boeing (NYSE: BA) last week deferred direct comment on the delivery schedule for the first tanker’s arrival to McConnell to the U.S. Air Force, as the aircraft is now involved in testing for its military type certificate.   A spokesperson for the service told the WBJ that it did not have any updates on the certification timeline or first delivery schedule at this time.  That leaves just two weeks for the tanker to still obtain its needed military type certificate and arrive in Wichita to meet the October goal. Boeing had reiterated that goal as recently as early last month when it was announced that the aircraft had completed its needed Federal Aviation Administration certifications.

  • Bank of America Limits Risk But Also Its Reward
    Business
    Bloomberg

    Bank of America Limits Risk But Also Its Reward

    Bank of America’s investors just got more evidence that taking the slow and steady road is paying off but that there is a trade-off as well. Bank of America’s anticipated losses from bad loans fell 14 percent from the same period a year ago to $716 million. Overall, revenue Bank of America’s consumer lending business grew 7 percent.

  • Kinder Morgan: Analysts Expect an Upside of 23%
    Business
    Market Realist

    Kinder Morgan: Analysts Expect an Upside of 23%

    Kinder Morgan’s Third-Quarter Earnings Are Expected to Rise (Continued from Prior Part) Analysts’ recommendations Of the 20 analysts surveyed by Reuters covering Kinder Morgan (KMI), nine analysts recommended a “strong buy,” seven recommended a “buy,

  • Many U.S. mall owners say good riddance to Sears
    Finance
    Reuters

    Many U.S. mall owners say good riddance to Sears

    The real estate investment trusts that own the malls and shopping centers where many Sears stores are anchor tenants have waited years for the retailer's demise to renovate the sites and boost rent, although redevelopment costs may strain some plans. Most large U.S. malls are controlled by REITs. In recent years, the REITs have cut their exposure to Sears Holdings Corp, which filed for Chapter 11 bankruptcy on Monday.

  • Microsoft (MSFT) Dips More Than Broader Markets: What You Should Know
    Business
    Zacks

    Microsoft (MSFT) Dips More Than Broader Markets: What You Should Know

    Microsoft (MSFT) closed the most recent trading day at $107.60, moving -1.8% from the previous trading session. This has was narrower than the Computer and Technology sector's loss of 5.44% and the S&P 500's loss of 4.1% in that time. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.86 billion, up 13.52% from the year-ago period.

  • As Cannabis D-Day Approaches, Winners and Losers Set to Emerge
    Business
    Bloomberg

    As Cannabis D-Day Approaches, Winners and Losers Set to Emerge

    After Canada legalizes recreational marijuana on Oct. 17, it will only take a quarter or two for clear winners and losers to emerge, according to investors and analysts who follow the sector. “These have all been concept stocks and they’re going to actually have to be real companies in another few months, which I think a lot of guys are terrified about,” said Greg Taylor, who manages the Purpose Marijuana Opportunities Fund. Taylor prefers CannTrust Holdings Inc., Hexo Corp. and Organigram Holdings Inc., which he says trade at a “more realistic valuation” than some of their bigger peers.

  • Marijuana stocks to watch: Canopy Growth is the cannabis business’s $4 billion gorilla
    Business
    MarketWatch

    Marijuana stocks to watch: Canopy Growth is the cannabis business’s $4 billion gorilla

    The following article is part of a package of stories that MarketWatch is publishing to mark the start of full legalization of cannabis for adult use in Canada on Wednesday. Smith Falls, Ontario–based Canopy Growth Corp. made headlines and drove cannabis stocks to new heights over the summer when it announced that Corona brewer Constellation Brands Inc. was going to invest an additional $4 billion in the company. Billed by both companies as a strategic partnership, the additional $4 billion investment adds to the 9.9% stake that Constellation bought in October of last year and sets the company up to either be bought outright by Constellation — via warrants that could increase its stake to more than 50% — or continue to work with the beverage company to create a range of consumer-focused cannabis products that may one day appear in markets in dozens of countries.

  • This Is the Average American's Salary. How Does Yours Compare?
    Business
    Motley Fool

    This Is the Average American's Salary. How Does Yours Compare?

    In an age of oversharing, many of us are remarkably tight-lipped when it comes to talking salary. But in reality, knowing where you stand can help you determine whether you're in a good place or whether you should be taking steps to boost your earnings

  • 2 Hot Marijuana Stocks Listing Soon on U.S. Exchanges -- Are They Buys?
    Business
    Motley Fool

    2 Hot Marijuana Stocks Listing Soon on U.S. Exchanges -- Are They Buys?

    Two marijuana stocks that are currently listed on Canadian stock exchanges soon plan also to list on U.S. stock exchanges. Aurora Cannabis (NASDAQOTH: ACBFF) (TSX: ACB) expects to trade on the New York Stock Exchange (NYSE) by the end of October and Aleafia Health (NASDAQOTH: ALEAF) should soon trade on the Nasdaq stock exchange. Are these hot marijuana stocks that are coming soon to U.S. stock exchanges smart picks to buy now?

  • Microsoft co-founder Paul Allen dies from cancer at 65
    Finance
    Engadget

    Microsoft co-founder Paul Allen dies from cancer at 65

    It's a sad day for the technology world, as Microsoft co-founder Paul Allen has died at the age of 65 due to complications from non-Hodgkin's lymphoma. The tech pioneer had been grappling with the cancer for years and received treatment for it in 2009

  • Finance
    Bloomberg

    Tesla Skeptic Surprised by How Much He Enjoyed the Model 3

    In a broader note about positive electric-car momentum, Jonas said he observed workers at Tesla’s lone auto plant in Fremont, California, who were “extremely busy cranking out Model 3s” for delivery in the U.S. He also drove the dual-motor performance version of the vehicle, which he sees as having better value-for-performance than the Model S sedan. “Frankly, our enjoyment of the high-spec version of the Model 3 took us by surprise,” Jonas said, adding that it’s “hard to say how much this matters.

  • Is This High-Flying Marijuana Stock the Next Tilray?
    Business
    Motley Fool

    Is This High-Flying Marijuana Stock the Next Tilray?

    Since then, Tilray's share price has skyrocketed to well over six times its opening-day level. At one point, Tilray was up a whopping 856% -- in just two months of trading. Now there's another marijuana stock that is beginning to turn heads.

  • Why Marijuana Stocks Cronos Group, Canopy Growth, and Tilray Jumped Today
    Business
    Motley Fool

    Why Marijuana Stocks Cronos Group, Canopy Growth, and Tilray Jumped Today

    The stock market pulled back on Monday, with major benchmarks failing to build on the positive momentum from last Friday. Cronos Group (NASDAQ: CRON), Canopy Growth (NYSE: CGC), and Tilray (NASDAQ: TLRY) were among the best performers. All three of these stocks have something in common: They all stand to benefit from Wednesday's effective date for legal sales of recreational cannabis product in Canada.