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With a market cap of $8.2 billion, the Fremont, California-based Enphase Energy, Inc. (ENPH) designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally.
Companies with a market value of $2 billion or more are classified as “mid-cap stocks,” and ENPH is a prominent member of this category. As one of the top solar energy suppliers in the country, the company benefits from the recent surge in switching towards renewable energy options by consumers.
However, ENPH has been trading 55.7% below its 52-week high of $141.63, recorded on Jun. 12 last year. The stock has declined 14.3% over the three months, underperforming the Invesco Solar ETF’s (TAN) fall of 6.7% over the same time frame.
The stock’s prospects look grim over the longer term as well. Over the past six months, ENPH has declined 44.6%, and underperforming TAN has declined 20.8%. Moreover, over the past year, ENPH has fallen 43.5%, falling behind TAN's 26.1% rally over the same period.
The stock has been trading below its 200-day moving average since the end of September but has climbed past its 50-day moving average recently.
ENPH’s shares have surged 3.7% following its Q4 earnings released on Feb. 4. The company reported a 26.5% increase in its revenue, which amounted to $382.7 million. Additionally, ENPH’s EPS amounted to $0.57, surpassing the Wall Street estimates by 32.6%.
Its rival, First Solar, Inc. (FSLR), has also declined over the past year, with its shares declining 45.6% over the past six months and 15.1% over the past 52 weeks.
Analysts are maintaining a moderately optimistic outlook on the stock's prospects. Of the 36 analysts covering it, the consensus rating is “Moderate Buy.” It has a mean price target of $81.96, which indicates a potential upside of 30.6% from its current level.
