Sign InEnphase Energy (ENPH) Stock: Analysts Predict Potential Rise Despite Bearish Outlook
Summary
Enphase Energy, Inc. (ENPH) closed at $123.97 on September 20, 2023, with a rise of 1.54%, suggesting potential growth due to analyst recommendations and the company's expansion in Australia's solar market, although the stock faces a bearish short-term outlook.
Fundamental Analysis
Enphase Energy, Inc. (ENPH), as of September 20, 2023, closed at $123.97, reporting a rise of 1.54%. In terms of the market cap, ENPH is worth around $16.90 billion, reflecting the company's size in the market. The company's price/earnings ratio stands at 31.07, with an EPS of 3.99, indicating a satisfactory earning performance.
The company's shares outstanding are around 136.35 million. Additionally, the year high and low for ENPH are recorded at $339.92 and $116.86, respectively. The last trading day saw a volume of about 4.47 million, higher than the average volume of 3.78 million.
Target estimates reveal a high, low, consensus, and median target of $379, $155, $268.23, and $265, respectively. This implies that market experts are predicting a potential rise in the stock price. Notably, the Discounted Cash Flow (DCF) of ENPH stands at $127.25, suggesting the stock is undervalued at its current price. Also, the future earnings announcement is projected for October 23, 2023.
From the analyst recommendations, the consensus leans towards 'buy', with 20 analysts supporting a 'buy' decision and 4 suggesting 'hold'. However, no analysts recommended 'sell' or 'strong sell', suggesting a positive outlook for ENPH.
Enphase Energy recently made news due to its increased presence in Australia's solar market, thereby promising an overall enhanced reach and potential growth for the company. However, the downturn within the solar inverter market could pose a challenge, as reflected in discussions comparing Enphase and SolarEdge.
Technical Analysis
Enphase Energy recorded its last close below both 50-day and 200-day moving averages, hinting at a bearish trend. The 50-day moving average is around $143.34 whereas the 200-day moving average is around $194.75. The MACD (3-month) is seen as -4.12, suggesting a selling pressure.
Furthermore, the RSI14 parameter at 44 shows neutrality, indicating neither overly sold nor overly bought conditions. ENPH's recent ATR (Average True Range) amounts to approximately 3.89, signaling a moderate degree of volatility.
The company's shares face a primary resistance level at $135.45, while the current support level stands firm at $122.34. The stop-loss for traders could be established at $119.48, preventing significant losses if the price falls.
Stock Performance Forecasts
Given the above technical and fundamental data, forecasts for ENPH for September 21, 2023, would suggest a potential slight rise, considering analyst recommendations and the DCF value. However, the weak technical parameters could mitigate this gain. Over the upcoming week, the price could exhibit minor fluctuations but likely maintain a level above the support level of $122.34.
Final Evaluation
Enphase Energy, under the current conditions, can be classified as a 'Hold.' The promising expansion in Australia offers potential growth, and the analyst consensus leans towards 'buy.' However, the negative MACD and the stock's position below the moving averages present a bearish short-term outlook that inhibits a clear 'buy' recommendation.
The decision also factors in the solar market's recent correction and the stock price's expected fluctuations in the short term. Nonetheless, Enphase Energy can be a valuable addition to an investor's portfolio for the long term, given future market uncertainties and the company's growing scale in the renewable energy sector.
