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Enphase Energy (ENPH) closed at $66.87 in the latest trading session, marking a +0.19% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.86%, and the Nasdaq, a tech-heavy index, lost 0.38%.
Shares of the solar technology company witnessed a loss of 9.62% over the previous month, beating the performance of the Oils-Energy sector with its loss of 9.81% and underperforming the S&P 500's loss of 2.2%.
The investment community will be closely monitoring the performance of Enphase Energy in its forthcoming earnings report. The company is predicted to post an EPS of $0.75, indicating a 38.89% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $375.83 million, up 24.21% from the prior-year quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Enphase Energy. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 1.85% fall in the Zacks Consensus EPS estimate. Enphase Energy presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Enphase Energy is presently trading at a Forward P/E ratio of 18.39. This valuation marks a premium compared to its industry's average Forward P/E of 11.84.
Also, we should mention that ENPH has a PEG ratio of 5.15. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Solar industry held an average PEG ratio of 0.69.
The Solar industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 142, this industry ranks in the bottom 44% of all industries, numbering over 250.
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.