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Here’s Why You Should Add Enphase Energy to Your Portfolio


Earnings estimates for Enphase Energy, Inc ENPH have been revised upward over the past 90 days, reflecting analyst’s optimism in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings moved up by 28.6% and 20% to 9 cents and 30 cents, respectively.

Enphase Energy, based in Petaluma, CA, designs, develops and sells microinverter systems for residential as well as commercial markets in the United States and internationally.

Let’s focus on factors that make Enphase Energy a profitable bet.

Earnings Surprise History and Price Performance

Enphase Energy has an average four-quarter positive earnings surprise of 44.13%. The company’s shares have surged 751.1% in a year’s time compared with the industry’s rise of 23.6%. The stock carries a Zacks Rank #2 (Buy).

VGM Score

The stock has an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.

Enphase’s Microinverter System

The Enphase IQ Microinverter System enables the simplification of solar installations. It provides a complete alternating current (AC) solution that uses no high-voltage direct current (DC) and provides a safe solar solution for homeowners. The system’s burst technology enables microinverters to produce more energy during low-light conditions.

Growth Projections

The Zacks Consensus Estimate for current-year earnings per share is pegged at 9 cents per share, reflecting a significant year-over-year surge of 136.0%.

For 2019, the consensus estimate for EPS is pegged at 30 cents per share, depicting a 233.3% year-over-year rise.

Other Stocks to Consider

A few other top-ranked stocks from the same sector are Devon Energy DVN, Murphy Oil Corporation MUR and Cheniere Energy, Inc LNG. Murphy Oil sports a Zacks Rank #1 (Strong Buy). Devon Energy and Cheniere Energy carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Murphy Oil delivered a positive earnings surprise of 4.55% in the last earnings report. Its 2018 estimates have increased 21.9% to $1.67 in the last 60 days.

Devon Energy delivered a positive earnings surprise of 5.26% in the last earnings report. Its 2018 estimates have surged 36.6% to $1.83 in the last 60 days.

Cheniere Energy delivered a positive earnings surprise of 90.32% in the last earnings report. Its 2018 estimates have moved up 7.8% to $1.93 in the last 60 days.

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