Enphase Energy (ENPH) has risen 16% on today’s trading with most analysts having a bearish sentiment on ENPH stock. Let’s analyze and dig a little deeper.
In the latest trading session, Enphase Energy (ENPH) closed at $37, marking a -1.38% move from the previous day. This move lagged the S&P 500’s daily gain of 1.47%. Elsewhere, the Dow gained 1.51%, while the tech-heavy Nasdaq added 1.11%.
Heading into today, shares of the solar technology company had gained 4.43% over the past month, lagging the Oils-Energy sector’s gain of 17.95% and the S&P 500’s gain of 16.09% in that time.
Investors will be hoping for strength from ENPH as it approaches its next earnings release, which is expected to be May 5, 2020. On that day, ENPH is projected to report earnings of $0.33 per share, which would represent year-over-year growth of 312.5%. Meanwhile, our latest consensus estimate is calling for revenue of $204.27 million, up 103.97% from the prior-year quarter.
Enphase Energy (ENPH): Oil & energy will change
Recent events has taken place that may change the oil & energy industry in 2020. In fact, Whiting Petroleum (WLL) has filed for bankruptcy in early April with Chesapeake Energy (CHK) hiring restructuring advisors for it’s largest investor.
Diamond Offshore (DO) has also announced that it will skip it’s next interest payment, likely causing it to default on it’s debt. Banks aren’t rushing to bail them out either. In fact, some of the biggest banks has already set up separate operations to take over oil production assets from companies that default.
This could permanently change the lending landscape for the oil & energy industry.
Oil & energy could see a transition
For years we have seen a slow transition of new types of energy like century-old fossil fuel energy infrastructure to new forms of energy like wind and solar electricity and electric vehicles.
A crash could accelerate this transition. Transportation will change in ways that we can’t yet fully anticipate, but I think one trend will be an acceleration to ride sharing, e-bikes, electric scooters, and even staying home in metro areas. Lower wage workers are going to be looking for ways to shave expenses, and what bigger expense will there be to cut than an automobile?
Conclusion: Is Enphase Energy (ENPH) a Longterm Buy?
Enphase Energy, overall, appears to be a very good investment option short term, Wall Street analysts aren’t expecting its price to rise considerably in the next several years. Enphase Energy’s shares fell through support on fears of the coronavirus pandemic but the recent sell-off created an attractive opportunity to invest in this stock.
The majority of the metrics point to this investment being highly attractive for the short term but highly unattractive for the long term.
