In the latest trading session, Enphase Energy (ENPH) closed at $103.46, marking a +1.9% move from the previous day. This change outpaced the S&P 500’s 0.52% gain on the day. Elsewhere, the Dow gained 0.54%, while the tech-heavy Nasdaq added 0.19%.
Heading into today, shares of the solar technology company had gained 44.49% over the past month, outpacing the Oils-Energy sector’s loss of 4.82% and the S&P 500’s gain of 4.79% in that time.
Wall Street will be looking for positivity from ENPH as it approaches its next earnings report date. This is expected to be October 27, 2020. In that report, analysts expect ENPH to post earnings of $0.24 per share. This would mark a year-over-year decline of 20%. Our most recent consensus estimate is calling for quarterly revenue of $169.79 million, down 5.7% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.17 per share and revenue of $737.62 million, which would represent changes of +23.16% and +18.14%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ENPH. These revisions help to show the ever-changing nature of near-term business trends. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. ENPH is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note ENPH’s current valuation metrics, including its Forward P/E ratio of 86.99. This represents a premium compared to its industry’s average Forward P/E of 41.79.
Investors should also note that ENPH has a PEG ratio of 2.74 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Solar stocks are, on average, holding a PEG ratio of 2.16 based on yesterday’s closing prices.
The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% 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.
To follow ENPH in the coming trading sessions, be sure to utilize Zacks.com.
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