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The latest trading session saw Enphase Energy (ENPH) ending at $63.69, denoting a +0.35% adjustment from its last day's close. The stock lagged the S&P 500's daily gain of 1%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 1.51%.
Prior to today's trading, shares of the solar technology company had lost 3.54% over the past month. This has was narrower than the Oils-Energy sector's loss of 3.79% and lagged the S&P 500's loss of 2.14% in that time.
The investment community will be closely monitoring the performance of Enphase Energy in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.74, reflecting a 37.04% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $375.82 million, up 24.21% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Enphase Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 2.36% lower. Right now, Enphase Energy possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Enphase Energy is presently trading at a Forward P/E ratio of 17.55. This expresses a premium compared to the average Forward P/E of 10.16 of its industry.
One should further note that ENPH currently holds a PEG ratio of 4.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Solar industry currently had an average PEG ratio of 0.73 as of yesterday's close.
The Solar industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 34% echelons of all 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.