Enphase Energy (ENPH) Declines More Than Market: Some Information for Investors

Enphase Energy (ENPH) ended the recent trading session at $40.94, demonstrating a -3.58% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.07%. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq gained 0.03%.

Shares of the solar technology company have depreciated by 1.85% over the course of the past month, underperforming the Oils-Energy sector's gain of 3.17%, and the S&P 500's gain of 3.94%.

Market participants will be closely following the financial results of Enphase Energy in its upcoming release. The company's upcoming EPS is projected at $0.62, signifying a 44.19% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $355.7 million, indicating a 17.21% growth compared to the corresponding quarter of the prior year.

ENPH's full-year Zacks Consensus Estimates are calling for earnings of $2.44 per share and revenue of $1.43 billion. These results would represent year-over-year changes of +2.95% and +7.19%, respectively.

It is also important to note the recent changes to analyst estimates for Enphase Energy. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, there's been a 0.72% fall in the Zacks Consensus EPS estimate. At present, Enphase Energy boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Enphase Energy is currently trading at a Forward P/E ratio of 17.43. This denotes no noticeable deviation relative to the industry average Forward P/E of 17.43.

The Solar industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 36, placing it within the top 15% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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

This article originally published on Zacks Investment Research (zacks.com).

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