Copyright forbes
CHONGQING, CHINA - JULY 19: In this photo illustration, a smartphone displays the logo of Enphase Energy Inc. (Photo illustration by Cheng Xin/Getty Images) Getty Images Enphase Energy (ENPH) has had a rough run, but the fundamentals remain solid. The solar leader still generates healthy cash flow and holds a strong position in home energy solutions. With the stock back near historical support levels, investors may be looking at the early stages of another potential rebound. ENPH stock is worth monitoring. Here’s why – it is currently positioned in the support zone ($29.58 – $32.70), levels from which it has previously made significant rebounds. Over the past 10 years, Enphase Energy stock attracted buying interest at this level on 3 occasions and subsequently managed to yield an average peak return of 312.4% Peak Return But is the price movement sufficient on its own? It certainly aids the case if the fundamentals have a strong basis. For ENPH Read Buy or Sell ENPH Stock to assess the persuasiveness of this buying opportunity. Is investing in ENPH stock hazardous? Absolutely it is. High Quality Portfolio reduces that risk. MORE FOR YOU Here are some quick data points for Enphase Energy that should aid in decision-making: Revenue Growth: 21.0% LTM and 0.5% average over the last 3 years. Cash Generation: Nearly 14.4% free cash flow margin and 13.7% operating margin LTM. Recent Revenue Shocks: The minimum annual revenue growth for ENPH in the last 3 years was -49.2%. Valuation: ENPH stock trades at a PE ratio of 20.8. Opportunity vs S&P: Compared to S&P, it offers lower valuation, higher LTM revenue growth, and reduced margins. For quick background, Enphase Energy offers innovative home energy solutions for the solar photovoltaic sector, catering to solar distributors, installers, OEMs, partners, and homeowners globally. ENPH Financial Metrics What Is Stock-Specific Risk If The Market Crashes? Enphase is not exempt from substantial declines. It decreased roughly 63% during the 2018 correction, nearly 60% amid the Covid crash, and experienced its largest setback with a 78% fall during the inflation shock. Even with all the favorable conditions, these drops highlight that the stock can be significantly affected when the market downturn. Solid fundamentals are essential, yet volatility is still an inherent aspect of investing. However, the risk isn’t confined to significant market downturns. Stocks can decline even when markets are performing well – consider occurrences such as earnings reports, business updates, and outlook modifications. Read ENPH Dip Buyer Analyses to discover how the stock has bounced back from substantial declines previously. The Trefis High Quality (HQ) Portfolio, comprising 30 stocks, has a history of comfortably surpassing its benchmark, which includes all three – the S&P 500, S&P mid-cap, and Russell 2000 indices. What is the reason for this? Collectively, HQ Portfolio stocks have delivered superior returns with reduced risk compared to the benchmark index; less volatility is evident in HQ Portfolio performance metrics. Editorial StandardsReprints & Permissions
