Why should you buy Enphase Energy (enph) stock?
• Enphase Energy's growth will likely continue at its strong pace, supported by a favorable macro environment to fight climate change. • The firm intends to introduce new products in a near future that are expected to expand its serviceable addressable market.
How can I get the latest news and ratings for enph?
Sign up to receive the latest news and ratings for ENPH and its competitors with MarketBeat's FREE daily newsletter. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. Compare your portfolio performance to leading indices and get personalized stock ideas based on your portfolio.
How volatile is Enphase Energy stock today?
As a highly volatile stock in general, Enphase Energy will often exaggerate the market's moves on a short-term basis. That's what we're seeing today. Volatility is to be expected for solar energy stocks right now, and it's not surprising to see a down day after a great run higher this year.
Is Enphase's new marketing machine making an impact?
The new marketing machine that Enphase hired a few months back is due to make an impact as well. • The IEA is out with its latest Renewables Market Report, which forecasts the planet's renewable electricity capacity will jump to more than 4,800 GW by the year 2026, an increase of over 60% compared to levels in 2020.
See more
What happened
So what
The first week of 2022 was a cloudy one for solar and energy storage outfit Enphase Energy (NASDAQ: ENPH). Shares fell nearly 21%, according to data provided by S&P Global Market Intelligence. The drop builds on the sharp sell-off the stock suffered during the last month and a half of 2021.
Now what
The threat of higher interest rates is the blame for this week's most recent drubbing. Specifically, minutes released from the Federal Reserve's last meeting in December 2021 indicate an interest rate hike is coming sooner than later.
The Motley Fool
Additionally, higher interest rates might put some pressure on solar and other renewable energy projects. Developing new energy systems is capital intensive and often funded with debt. Higher rates thus make it more expensive to break ground on a new project.
Why It Matters
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community.
What It Means
There’s no getting around the fact that this news casts some dark clouds over an industry that looked poised for growth in 2022. At the same time, it’s hardly surprising. As the report noted, costs of materials necessary for all types of manufacturing have risen sharply throughout the year.
Could an upgrade cause a stock to drop?
He’s certainly right that alternative energy solutions are becoming increasingly necessary. Naturally, the demand for the services of the companies producing them will only grow. That said, it’s clear that our government will need to find solutions to deal with the supply chain crisis.
What happened
Travis Hoium has been writing for fool.com since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things. Follow @TravisHoium
So what
Shares of Enphase Energy ( NASDAQ:ENPH) fell as much as 6.6% in trading Wednesday after an analyst changed their price target. Shares closed the day down 5.6%.
Now what
The news wasn't all bad for Enphase Energy today. JPMorgan analysts raised their price target on the stock from $99 per share to $146 per share and kept an overweight rating on the stock. So why did shares drop?