Here’s why emphasize energy keeps turning

enphase

Enphase Energy is a NASDAQ-listed energy technology company that is based in Fremont, California. Enphase designs and manufactures software-driven home energy solutions that span solar generation, home energy storage, and web-based monitoring and control. Since now Emphase has shipped about ten million solar microinverters that are primarily applied to the residential and commercial markets in North America, Europe, and Australia. Microinverters convert the direct current power from the solar panel (DC) directly into grid-compatible alternating current (AC) for use or export. Enphase was the first company to successfully commercialize the microinverter on a wide scale and remain the market leader. Such a system can be connected directly to the grid, or to each other to produce larger arrays.

What happened?
Shares of Enphase intensity fell as much as 11.8% a few days ago, and the shares have lost over 25% since Aug. 26. Though there hasn't been any negative news about the stock turning down, the stock had posted a 600% year-to-date gain before the recent dive began. It wouldn't be too surprising if investors want to take some gains off from the table that has been one of the best renewable energy stocks on the market. This is true for the vertical ascent. By the end of July business have announced the second-quarter operating result that drove the expectations from analysts and executives. The stock price also hiked up in a single day and was much worth at the beginning of the year.

So what
On the one hand, shares of Enphase Energy are trading at 7.7 times sales and more than 26 times book value -- very expensive valuations. The business has finally turned a corner with its new product advertisement and new generation IQ 7 micro-inverters. The business is profitable and growing at a healthy clip -- very attractive characteristics.

Enphase Energy reported an operating margin of 10.5% in the first half of 2019, compared to an operating margin of negative 2.1% in the year-ago period. In other words, the stock's ascent is no fluke, and the business appears capable of growing into its premium valuation.

Now what
Even after today's tumble, shares of Enphase Energy have ascended 445% since the beginning of the year. Given the exponential growth of solar energy and the company's recent success, investors with a long-term mindset might consider the recent plunge a buying opportunity -- and they may have a strong argument to make.
Here’s why emphasize energy keeps turning Here’s why emphasize energy keeps turning Reviewed by Newzpot on 22:33:00 Rating: 5

No comments:

Powered by Blogger.