ENPH Stock: Riding The Wave In Solar Energy

Enphase Energy Inc

Enphase Energy Inc

ENPH

$9.14


3.29%


19%

IBD Stock Analysis

• Enphase has held most of its recent gains in current consolidation
• Stock not actionable today but worth watching
• Aggressive investors could consider 294.90 as an early-entry buy point

Composite Rating

Industry Group Ranking

Emerging Pattern

Pullback

* Not real-time data. All data shown was captured at
2:12PM EDT on
10/03/2022.

Enphase Energy (ENPH) is the IBD Stock Of The Day. It’s one of several solar energy stocks that investors are piling into thanks to the recently approved Inflation Reduction Act, which authorized $369 billion in spending on green energy. ENPH stock is nearing a buy point.

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If Enphase stock rises above its 50-day moving average line and 21-day line, it would clear a short, downward-sloping trend line and get above very short-term highs. That would create an early-entry buy point of 294.90, which is 10 cents above its Sept. 27 high of 294.80, based on IBD analysis.

Enphase stock climbed 3.3% to close at 286.61 on the stock market today.

The Fremont, Calif.-based company is a leading provider of solar microinverters. Microinverters boost solar energy production, improve reliability in solar energy systems and support intelligent energy management.

Enphase also makes software to monitor energy generation and battery systems. The company focuses primarily on residential markets.

ENPH Stock: Delivering Clean Energy Solutions

Enphase says its mission is delivering technology solutions that make clean energy affordable, reliable and readily accessible. The company’s competitors include Israel-based SolarEdge Technologies (SEDG).

On July 27, Enphase reported second-quarter earnings that caused ENPH stock to vault 18%. Adjusted earnings per share soared 102% to $1.07, well ahead of Wall Street predictions for 85 cents. Revenue jumped 67% to $530 million, beating estimates of $508 million.

For the third quarter, Enphase expects revenue in the range of $590 million to $630 million — or $610 million at the midpoint. That exceeded analyst forecasts by 11%.

Enphase Boasts More Than 16,000 Installers

“As I have stated before, our strategy is to build best-in-class home energy systems and deliver them to homeowners through our network of distributors and installers, enabled by our installer platforms,” Enphase Chief Executive Badri Kothandaraman said on the company’s earnings call with analysts. “We have certified more than 1,600 installers worldwide to date, and we are continuing to win around 15 new installers a week in the U.S.”

At the end of the first quarter, Enphase announced it would start offering electric-vehicle chargers through its solar installers. It also hopes to be manufacturing its own EV chargers by the end of 2022.

The solar energy sector ranks No. 1 of the 197 industry groups tracked by IBD.

According to IBD Stock Checkup, ENPH stock has a best-possible IBD Composite Rating of 99. IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.

In addition, its Relative Strength Rating stands at 98 out of 99. That means ENPH stock is in the top 2% all stocks over the past 12 months. Ideally, investors should key in on ratings of 80 or better.

ENPH stock is on the IBD 50 list of growth stocks to buy and watch.

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