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

In the latest trading session, Enphase Energy (ENPH) closed at $128.11, marking a -0.73% move from the previous day. This move lagged the S&P 500's daily gain of 0.38%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.54%.

Coming into today, shares of the solar technology company had lost 14.15% in the past month. In that same time, the Oils-Energy sector gained 2.74%, while the S&P 500 lost 1.68%.

Enphase Energy will be looking to display strength as it nears its next earnings release. On that day, Enphase Energy is projected to report earnings of $1.10 per share, which would represent a year-over-year decline of 12%. Our most recent consensus estimate is calling for quarterly revenue of $574.46 million, down 9.49% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.05 per share and revenue of $2.73 billion, which would represent changes of +9.31% and +17.01%, respectively, from the prior year.

Any recent changes to analyst estimates for Enphase Energy should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.98% lower. Enphase Energy is currently a Zacks Rank #3 (Hold).

In terms of valuation, Enphase Energy is currently trading at a Forward P/E ratio of 25.57. For comparison, its industry has an average Forward P/E of 24.35, which means Enphase Energy is trading at a premium to the group.

We can also see that ENPH currently has a PEG ratio of 1.1. 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. ENPH's industry had an average PEG ratio of 0.74 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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

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