Even before Enphase Energy (NASDAQ:ENPH) released its fourth-quarter 2022 financial results, we already established that ENPH stock deserves an “A” rating. Now, our confidence is only growing stronger as Enphase’s results and forward guidance are undeniably strong.
Based in California, Enphase Energy sells microinverter-based solar storage systems. Thus, the company is poised to benefit from the government’s clean-energy incentives, which President Biden reminded people of during his recent State of the Union address.
Still, there will always be skeptics and doubters. Perhaps as the positive evidence mounts, the naysayers will retreat and Enphase Energy’s loyal investors can enjoy a tremendous year of wealth-building.
What’s Happening with ENPH Stock?
It’s actually an ideal time to consider a long position in ENPH stock. If you’ve been patiently awaiting a share-price dip, now’s your chance to make a move.
Enphase Energy trades at around $215. Consider it a gift from the market. The stock has broken above $300 more than once, so a 50%-ish rally this year isn’t out of the question.
A rally in ENPH stock would be fully justified by hard, verifiable data. The company shipped a jaw-dropping 4,873,702 microinverters in a three-month period. That happened in Q4 of 2022 when Enphase Energy generated record quarterly GAAP-measured revenue totaling $724.7 million.
That’s a huge improvement compared to the year-ago quarter’s revenue of $412.7 million. This result also exceeded Wall Street’s consensus estimate of $704 million, so Enphase Energy performed quite well even during a time of elevated inflation.
Enphase Energy’s Guidance Points to Continued Growth
Suffice it to say, 2022’s fourth quarter was an amazing time for Enphase Energy. For instance, that’s when the company introduced its IQ8 Microinverters in France and the Netherlands.
In addition, Enphase Energy beat the inflation blues in Q4 2022 with expectation-beating earnings. Specifically, Enphase posted quarterly non-GAAP diluted earnings of $1.51 per share, which is more than double the 73 cents recorded in the year-earlier quarter. Analysts, meanwhile, had only expected Enphase Energy to report earnings of $1.27 per share for 2022’s fourth quarter.
Looking ahead, Enphase Energy’s positive trajectory ought to continue as the company expects to generate $700 million to $740 million during the current quarter. This range is notably higher than analysts’ consensus revenue guidance of $685.2 million.
What You Can Do Now
ENPH stock is down from its $300+ peak price now. How high could it go during the coming months? KeyBanc Capital Markets analysts set a $363 price target price on Enphase shares, and that’s not unrealistic.
Enphase Energy is selling a lot of microinverters, taking in robust revenue and beating Wall Street’s projections. Still, there’s no guarantee that the share price will reach the KeyBanc analysts’ $363 price objective.
However, a target of $300 or higher isn’t unreasonable for 2023. If you agree, then you might consider an investment in Enphase Energy today.
— Louis Navellier and the Investor Place Research Staff
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Source: Investor Place