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Enphase Energy (ENPH) closed the most recent trading day at $72.15, moving +1.11% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.26%. On the other hand, the Dow registered a gain of 0.8%, and the technology-centric Nasdaq increased by 1.77%.
Prior to today's trading, shares of the solar technology company had gained 1.45% over the past month. This has outpaced the Oils-Energy sector's loss of 5.1% and the S&P 500's loss of 2.82% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Enphase Energy in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.75, marking a 38.89% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $376.7 million, showing a 24.5% escalation compared to the year-ago quarter.
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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. At present, Enphase Energy boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Enphase Energy is currently exchanging hands at a Forward P/E ratio of 19.16. This signifies a premium in comparison to the average Forward P/E of 11.35 for its industry.
Also, we should mention that ENPH has a PEG ratio of 5.37. 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. As the market closed yesterday, the Solar industry was having an average PEG ratio of 0.71.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 43% 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.