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Fremont, California-based Enphase Energy, Inc. (ENPH) designs, develops, manufactures, and sells solar energy equipment for the solar photovoltaic industry internationally. Valued at $15.4 billion by market cap, the company offers home and commercial solar and storage solutions.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and ENPH perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the solar industry. Enphase's technological prowess drives its market leadership with industry-leading microinverter technology and integrated solar-plus-storage solutions.
Despite its notable strength, ENPH shares slipped 19.8% from their 52-week high of $141.63, achieved on Jun. 12. Over the past three months, ENPH stock has gained 10.4%, outperforming the Dow Jones Industrials Average’s ($DOWI) 7.8% gains during the same time frame.
However, in the longer term, shares of ENPH dipped 14% on a YTD basis and declined 4.7% over the past 52 weeks, underperforming DOWI’s YTD gains of 11.9% and 25.5% returns over the last year.
To confirm the bearish trend, ENPH has been trading below its 200-day moving average since early September, with slight fluctuations recently. However, it has been trading above its 50-day moving average since mid-August, with some fluctuations.
Enphase’s underperformance in 2024 mainly stems from decreased residential solar demand and higher financing costs. The company has also been impacted by limitations in manufacturing capacity and cost reduction efforts, which have been further affected by economic instability and lower demand in key markets. In addition, ENPH has been affected by broader market trends and short-term industry challenges.
However, on Jul. 23, ENPH shares reported its Q2 results, and its shares surged more than 12% in the following trading session. Its adjusted EPS of $0.43 did not meet Wall Street expectations of $0.49 and its revenue was $303.5 million, also missing Wall Street forecasts of $309.2 million. For Q3, ENPH expects revenue to be between $370 million and $410 million.
ENPH’s rival, SolarEdge Technologies, Inc. (SEDG), has had a rough ride. ENPH's shares plummeted 76.9% on a YTD basis and 83% over the past 52 weeks, underperforming ENPH.
Wall Street analysts are moderately bullish on ENPH’s prospects. The stock has a consensus “Moderate Buy” rating from the 34 analysts covering it, and the mean price target of $127.25 suggests a potential upside of 12% from current price levels.
On the date of publication, Neha Panjwani 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.
