In the latest trading session, Enphase Energy (ENPH) closed at $153.63, marking a -1.87% move from the previous day. This move was narrower than the S&P 500’s daily loss of 2.77%. At the same time, the Dow lost 2.82%, and the tech-heavy Nasdaq lost 0.83%.
Prior to today’s trading, shares of the solar technology company had lost 20.87% over the past month. This has lagged the Oils-Energy sector’s gain of 2.95% and the S&P 500’s loss of 1.35% in that time.
Wall Street will be looking for positivity from Enphase Energy as it approaches its next earnings report date. This is expected to be April 26, 2022. The company is expected to report EPS of $0.68, up 21.43% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $434.21 million, up 43.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.20 per share and revenue of $2.02 billion, which would represent changes of +32.78% and +46.18%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Enphase Energy. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.05% higher. Enphase Energy currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Enphase Energy has a Forward P/E ratio of 48.94 right now. Its industry sports an average Forward P/E of 33.73, so we one might conclude that Enphase Energy is trading at a premium comparatively.
The Solar industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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