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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.
