Enphase Energy (ENPH) ended the recent trading session at $53.51, demonstrating a -5.92% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.26%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, lost 0.97%.
Coming into today, shares of the solar technology company had gained 51.08% in the past month. In that same time, the Oils-Energy sector gained 0.73%, while the S&P 500 gained 0.23%.
The investment community will be paying close attention to the earnings performance of Enphase Energy in its upcoming release. The company's earnings per share (EPS) are projected to be $0.46, reflecting a 33.33% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $291.74 million, down 19.66% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.12 per share and a revenue of $1.23 billion, representing changes of -28.38% and -16.78%, respectively, from the prior year.
Any recent changes to analyst estimates for Enphase Energy should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Enphase Energy possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Enphase Energy is currently being traded at a Forward P/E ratio of 26.78. Its industry sports an average Forward P/E of 21.21, so one might conclude that Enphase Energy is trading at a premium comparatively.
The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 183, positioning it in the bottom 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Enphase Energy, Inc. (ENPH): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).