Enphase Energy (ENPH) Gains As Market Dips: What You Should Know

Enphase Energy (ENPH) closed the most recent trading day at $24.17, moving +0.1% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.08%, while the tech-heavy Nasdaq lost 0.3%.

Coming into today, shares of the solar technology company had lost 3.71% in the past month. In that same time, the Oils-Energy sector lost 2.33%, while the S&P 500 lost 0.25%.

Wall Street will be looking for positivity from ENPH as it approaches its next earnings report date. This is expected to be October 29, 2019. The company is expected to report EPS of $0.25, up 525% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $176.47 million, up 126.24% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.79 per share and revenue of $603.28 million, which would represent changes of +690% and +90.82%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ENPH. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. ENPH is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, ENPH is currently trading at a Forward P/E ratio of 30.49. This valuation marks a premium compared to its industry's average Forward P/E of 22.6.

The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 23% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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