Enphase Energy Inc. (ENPH) Stock Behavior Isn’t As Predictable As You Think

Enphase Energy Inc. (NASDAQ:ENPH) at last check was buoying at $294.83 on Friday, August 12, with a rise of 0.66% from its closing price on previous day.

Taking a look at stock we notice that its last check on previous day was $292.90 and 5Y monthly beta was reading 1.48 with its price kept floating in the range of $291.5042 and $305.605 on the day. Company’s P/E ratio for the trailing 12 months is 206.56. Considering stock’s 52-week price range provides that ENPH hit a high price of $308.88 and saw its price falling to a low level of $113.40 during that period. Over a period of past 1-month, stock came adding 52.05% in its value.

With its current market valuation of $39.01 billion, Enphase Energy Inc. is set to declare its quarterly results on Oct 24, 2022 – Oct 28, 2022. Analysts are in estimates of $1.03 per share for company’s earnings in the current quarter and are expecting its annual EPS growth moving up to $3.96 for 2022 with estimates of that growing to $4.74 in next year. These estimates are suggesting current year growth of 64.30% for EPS and 19.70% growth next year.

Analysts watching the company’s growth closely have provided estimates for its revenue growth with an average revenue estimate of $609.46 million. They suggested that in the process company could generate revenue of as low as $550.9 million which could climb up to $629.18 million to hit a high. The average estimate is representing an increase of 73.40% in sales growth from that of posted by the company in the same quarter of last year. In keeping analyst consensus estimate with, company is forecasted to be making an annual revenue of $2.24 billion in 2022, which will be 62.30% more from revenue generated by the company last year.

In last 7 days, analysts came adjusting their opinions about stock’s EPS with 19 upward and no downward revisions, an indication which could give clearer idea about the company’s short term price movement. In contrast, when we review ENPH stock’s current outlook then short term indicators are assigning it an average of 100% Buy, while medium term indicators are categorizing the stock at an average of 100% Buy. Long term indicators are suggesting an average of 100% Buy for it.

According to ratings assigned by 32 analysts at the scale of 1 to 5 with 1.00 representing a strong buy and 5.00 suggesting a strong sell; 7 of them are recommending Enphase Energy Inc. (ENPH) as a Hold, while 23 are in view that stock is a Buy. Recommendation by 1 analysts for the stock is an Underweight while number of those analysts who rated the stock as an Overweight is 1, whereas 0 of them are considering the stock as a Sell. When taken as whole, stock gets a rating of Overweight and that encourages the investors to exploit the opportunity and build their stake up in the company.

Digging deeper we become aware of the PEG ratio of the ENPH stock which is currently positioned at 6.40. It further provides that stock’s current price level is 14.55% away from its 20-day simple moving average and is 34.04% off its SMA50. Its relative strength index (RSI) for 14-periods is oscillating at 67.78 while volatility remained at 6.17% over the past week which changes to 6.58% when measuring it over the past month. Beta is valued at 1.48, while measure of average true range or ATR is currently at 17.23. In predicting price targets of as low as $194.00 and as high as $363.00, analysts are in agreement on assigning the stock over the next 12 months average price target of $273.02. Stock’s current price level is 34.2% above from estimated low price target while it is -23.12% below the estimated high; and even if the ENPH’s share succeeded to reach the median price of $278.00, then the outlook of 5.71% could come to the excitement of the investors.

In comparing Enphase Energy Inc. (ENPH)’s stock with other industry players reveals that stock’s latest price change of 0.66% and that of 60.68% over the past 12 months is in competing position with that of Suncor Energy Inc. (SU) which saw its stock price fall by 0.00% in the recent trading and went through an increase of 61.27% in past 12-month trading. Industry’s another major player Eaton Corporation plc (ETN) has rise 0.74% up in latest trading session, but over the past year has faced afall of -10.46%, while TE Connectivity Ltd. (TEL) was also up 0.92% however its price remained floating in the red at -11.41% over the same period. Enphase Energy Inc. has a P/E ratio of 206.56 against that of Suncor Energy Inc.’s 9.54 while Eaton Corporation plc is showing 25.95 for the same. On the other hand, the S&P 500 Index is up 0.65% in the early deals today while the Dow Jones Industrial was dealinghigher at 0.40%.

Having a second look at Enphase Energy Inc. (NASDAQ:ENPH) provides that stock’s average daily trading volume for 3 months was 3.13 million, while it jumped to 3.91 million when we calculate an average volume for past 10 days. Number of outstanding shares of the stock stood at 135.20 million.

The percentage of outstanding shares held by the insiders is 1.30% while it is 74.00% for the institutional holders. The figures also indicate that as of Jul 28, 2022, number of stock’s short shares was 4.76 million which implies a short ratio of 1.26. This shows up a 3.52% of Short Interest in company’s outstanding shares on the day. In July the standing of shares short improved as it was 4.25 million in the previous month. Addition of 60.11% by stock’s current price to its year-to-date value in today’s trading is likely to be increasing investors’ interest in the stock as it is hinting an extended uptrend.

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