S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
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This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
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Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
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Critical asset just had biggest fall on record (Ad)
What to watch for as China's major political meeting of the year gets underway
South Korean doctors hold massive anti-government rally over medical school recruitment plan
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
Critical asset just had biggest fall on record (Ad)
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet
Critical asset just had biggest fall on record (Ad)
What to watch for as China's major political meeting of the year gets underway
South Korean doctors hold massive anti-government rally over medical school recruitment plan
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
Critical asset just had biggest fall on record (Ad)
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet
Critical asset just had biggest fall on record (Ad)
What to watch for as China's major political meeting of the year gets underway
South Korean doctors hold massive anti-government rally over medical school recruitment plan
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Lawyers who successfully argued Musk pay package was illegal seek $5.6 billion in Tesla stock
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Sports analytics may be outnumbered when it comes to artificial intelligence
Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot
Critical asset just had biggest fall on record (Ad)
Norway's hospitalized king gets a pacemaker in Malaysia after falling ill during vacation
Head Start preschools aim to fight poverty, but their teachers struggle to make ends meet
Critical asset just had biggest fall on record (Ad)
What to watch for as China's major political meeting of the year gets underway
South Korean doctors hold massive anti-government rally over medical school recruitment plan

Solar Battery Maker Enphase Clears Buy Point: Can Rally Hold?

Solar Battery Maker Enphase Clears Buy Point: Can Rally Hold? Shares of solar battery system maker Enphase Energy NASDAQ: ENPH briefly cleared a buy point Friday, but reversed lower, even as the broader market advanced.

Key Points

  • Enphase Energy briefly passed a buy point Friday but ended the session lower.
  • The stock gapped up in two successive sessions last month, following better-than-expected earnings and an analyst upgrade.
  • In the past eight quarters, Enphase increased earnings at rates between 31% and 212%. Revenue grew between 26% and 152%.
  • The company is likely to benefit from federal subsidies favoring renewable energy. 
  • 5 stocks we like better than Enphase Energy

That type of price action happens fairly often, as investors who bought at certain levels nab profits as the stock overcomes price resistance. 

In the case of Enphase, the stock gapped up in two successive sessions late last month, following an analyst upgrade and a strong third-quarter earnings report. On October 26 it retook its 50-day average in heavy volume. Shares had traded below that key price line since late September.

Starting on November 1, the stock began etching a handle to a cup pattern. It cleared a handle buy point above $316.87 at the open Friday, but about an hour into the session, it began selling off.

That doesn’t mean the breakout won’t hold; it could mean that investors who bought at lower price points are taking profits, now that the stock cleared resistance.

One of Enphase’s focuses is solar microinverters. These help increase the production of sun-powered energy while improving energy management and reliability. The company also makes battery systems. It mainly operates in the residential market. 

Earnings & Revenue Ahead Of Views 

In the third quarter, Enphase reported net income of $1.25 per share on revenue of $634.7 million. That topped Wall Street consensus views of $1.09 a share and $530.2 million, respectively. 

When it comes to growth, Enphase is a standout. In the past eight quarters, Enphase increased earnings at rates between 31% and 212%. Revenue grew between 26% and 152%.

There’s likely more strength ahead. For the full year, Wall Street is eyeing earnings of $4.37 per share, an 81% increase. Next year, that’s seen growing another 24% to $5.42 per share. 

Based on recent legislation, those don’t seem like pie-in-the-sky hopes and wishes. The Inflation Reduction Act will expand opportunities for renewable energy companies in the coming years. 

Enphase’s stock price has been on a tear, with gains of 19.78% in the past month and 69.04% year-to-date. The one-month gain was a paltry 1.98% as the stock rallied back from a 17% pullback in the recent cup pattern. 


Analysts have a “moderate-buy” rating on the stock with a price target of $293.04. That represents a 10% downside but remember: That’s a consensus view. If you dig into the data compiled by MarketBeat you’ll see that seven analysts boosted their price targets after the most recent earnings report.

You’ll also notice that many of these analysts have a price target that falls within a range, with the lower end of these ranges pulling down the consensus average. In fact, in some cases, the stock has already far surpassed an increased price target.  

With a market cap of $39.76 billion, Enphase is a component of the S&P 500. However, with a weighting of just 0.126011%, it won’t move the needle when it comes to index direction. 

Fellow S&P Component Still In Base

The entire solar energy subindustry is among market-wide top performers at the moment. Fellow S&P 500 component SolarEdge Technologies NASDAQ: SEDG advanced 26.10% in the past week and 36.48% in the past month. 

The stock gapped up on November 8, following a better-than-expected quarterly earnings report. Although net income declined by 37% from the year-earlier quarter, the bottom-line results still came in ahead of views. 

On the top line, SolarEdge, which makes power and monitoring systems to manage and optimize energy generation, reported $836.7 million in sales, up 59% from a year ago. 

SolarEdge is attempting to climb out of a double-bottom consolidation that began in early August. It’s corrected 49% so far, but closed Friday at $288.91, up $5.24, or 1.85%. It’s currently about 11% below a potential buy point above $324.32. 
Solar Battery Maker Enphase Clears Buy Point: Can Rally Hold?

→ This is the #1 Stock to Buy for the AI Tidal Wave (From Chaikin Analytics) (Ad)

Should you invest $1,000 in Enphase Energy right now?

Before you consider Enphase Energy, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Enphase Energy wasn't on the list.

While Enphase Energy currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Enphase Energy (ENPH)
4.8727 of 5 stars
$129.66+2.1%N/A42.37Moderate Buy$153.65
SolarEdge Technologies (SEDG)
4.2656 of 5 stars
$67.88+1.1%N/A150.84Hold$109.69
Compare These Stocks  Add These Stocks to My Watchlist 

Kate Stalter

About Kate Stalter

  • stalterkate@gmail.com

Contributing Author

Retirement, Asset Allocation, and Tax Strategies

Experience

Kate Stalter has been a contributing writer for MarketBeat since 2021.

Additional Experience

Series 65-licensed investment advisor, financial advisor, Blue Marlin Advisors; investment columnist for Forbes, U.S. News & World Report

Areas of Expertise

Asset allocation, technical and fundamental analysis, retirement strategies, income generation, risk management, sector and industry analysis

Education

Bachelor of Arts, Saint Mary’s College, Notre Dame, Indiana; Master of Business Adminstration, Kellogg School of Management at Northwestern University

Past Experience

Founder, financial advisor for Better Money Decisions; editor, stock trading instructor for Investor’s Business Daily; columnist, podcast host, video host for MoneyShow.com; contributor for Morningstar magazine


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