Enphase Energy, Inc. (ENPH), headquartered in Fremont, California, is a global leader in energy technology, specializing in innovative microinverter systems, energy storage solutions, and smart energy management. With a market cap of $9.9 billion, Enphase serves diverse industries, including residential, commercial, and industrial solar markets, driving the transition to clean, sustainable energy worldwide.
Companies valued at under $10 billion are typically classified as “mid-cap” stocks, a category in which Enphase Energy fits comfortably. With its strong commitment to sustainability and innovation, Enphase continues to play a pivotal role in the residential, commercial, and industrial solar markets, driving the transition toward a cleaner and more efficient energy future.
Enphase Energy’s shares are trading 48.3% below their 52-week high of $141.63, hit on June 12. The stock has declined 37.2% over the past three months, significantly underperforming the Technology Select Sector SPDR Fund’s (XLK) gains of 7.6% over the same time frame.
Over the longer term, ENPH has dropped 32.2% in the past six months, significantly underperforming XLK's 8.2% gain. Similarly, over the past 52 weeks, ENPH's 45.3% decline contrasts sharply with XLK's 25.2% growth.
Since late September, ENPH has consistently remained below its 50-day and 200-day moving averages, indicating a sustained bearish trend.
Enphase Energy’s shares declined 14.9% following a disappointing Q3 earnings release on Oct. 22. Revenue amounted to $380.9 million, down 30.9% year over year and 3.3% below analyst’s expectations. Non-GAAP EPS of $0.65 also fell short of estimates by 16.8%.
The company provided lackluster guidance for fiscal Q4, forecasting midpoint revenue of $380 million, which is 12.7% below consensus projections. Non-GAAP gross margin is anticipated to be between 49% and 52%. Net IRA benefit is expected to be between $38 million and $41 million based on estimated shipments of 1,300,000 units of U.S.-manufactured microinverters.
Highlighting the contrast in performance, ENPH has outpaced its rival SolarEdge Technologies, Inc. (SEDG), which declined 84.6% over the past 52 weeks.
Analysts remain cautiously optimistic about the stock’s prospects despite noting its underperformance compared to the broader tech sector. ENPH stock has a consensus rating of “Moderate Buy” from the 37 analysts covering the stock and has a mean price target of $96.11, suggesting a potential upside of 31.2% from its current price.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- Is DJT Stock a Buy, Sell, or Hold as Trump Shifts $4 Billion Stake?
- Billionaire Stanley Druckenmiller Is Giving Up on Palantir Stock. Should You?
- 3 Tech Stocks to Buy for Steady Growth in 2025
- Should You Buy This Hot Data Center Stock Before 2024 Ends?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
