ENPH trade ideas
ENPH Long Term Buy Using W5T Elliot Wave and RollerCoaster AnalyThis high performing clean tech stock is on sale for almost 50% off. While a move toward the lower supply / demand zone at $30 would be ideal, a @tradethefifthcom Rollercoaster signal has appeared at around the $40 mark. Scaling in at $35 seems a good place to start, either adding on at $30 or $40.
NASDAQ:ENPH
Enphase Energy, Inc. on watch-list Short interest 26.82%
Company profile
Enphase Energy, Inc. engages in the design, development, manufacture, and sale of microinverter systems for the solar photovoltaic industry. Its products include IQ 7 Microinverter Series, IQ Battery, IQ Envoy, IQ Microinverter Accessories, IQ Envoy Accessories, and Enlighten & Apps. The company was founded by Raghuveer R. Belur and Martin Fornage in March 2006 and is headquartered in Fremont, CA.
Enphase Energy Inc Rises on beat and Guidance Earnings beat and good guidance
Total revenue for the fourth quarter of 2019 was $210 million, including approximately $36.4 million of safe harbor revenue. Total revenue for the fourth quarter of 2019 increased 17% sequentially and increased 128% year-over-year. We shipped approximately 677 megawatts DC in the fourth quarter of 2019, an increase in megawatts this year of 16% sequentially. The megawatts shipped represented approximately 2.1 million microinverters.
Non-GAAP gross margin for the fourth quarter of 2019 was 37.3% compared to 36.2% for the third quarter of 2019. Expedite fees are now normalized within our expected range, and therefore, did not have an abnormal impact in gross margin. Our component supply is stable and, as a result, we will no longer quantify this expense if it is within the normal course of business.
Non-GAAP operating expenses were $26.1 million for the fourth quarter of 2019 compared to $25 million for the third quarter of 2019. GAAP operating expenses were $33.4 million for the fourth quarter of 2019 compared to $31 million for the third quarter of 2019. GAAP operating expenses for the fourth quarter of 2019 included $5.6 million of stock-based compensation expenses, $545,000 of amortization expenses for acquired intangible assets, and $1.1 million of restructuring expenses. Our restructuring program was completed at the end of 2019, and at this time, we do not anticipate any further or future expenses related to restructuring.
On a non-GAAP basis, income from operations was $52.3 million for the fourth quarter of 2019 compared to $40.2 million for the third quarter of 2019. On a GAAP basis, income from operations was $44.4 million for the fourth quarter of 2019. This increase in operating income is reflective of the strong demand of our products, and our focus on cost reduction and expense management.
ENPH - Watch listI am not prepared to make a recommendation but I am intrigued by the company. It is in the renewable energy space. Fundamentally, the stock is a bit overvalued with P/E, PEG and P/B overvalued but it is in the solar energy sector. I am including my current wave count and would look for entry into the stock between 30-35 for what I expect eventually will reach $50+.
Reviewoil dxy ENPH gold; The more time you allow something the more likely it is to move further whether it is a rocketship, your car, or a stock. The mechanics of the scalp restrict the distance you will look for. I spent a minute on ENPH that my students traded very effectively. However, what that stock did was extraordinary and there were clues that we were not looking for, and I wanted to mention that.
$ENPH Enhase Energy - Semiconductor Strength (First Stock Idea)$ENPH continues to be on a tear in recent trading sessions, helped both by technical and macro factors.
On the macro front, the headline risk of a trade war has finally receded as the US and China signed their trade deal in January 2020. This has helped to roll back some dark clouds as it relates to global trade flows, especially for geopolitically sensitive products such as semiconductors.
On the technical front, both the RSI and price level for $ENPH continue to be moving higher, within the Rising Channel, which bodes well for this stock. The final "Cherry on Top" from a technical perspective, is the fact that prices appear to have broke higher out of a "Bear Flag" pattern, which is a good sign that prices have more room to run.
If these factors hold, we could see prices reach $35.11 ("Orange Weekly resistance Line") in the next coming days and weeks. However, if these bullish factors run out of steam, traders should be prepared to see prices fall back down to $27.70 level.
Enphase to Find Resistance at $36 in Early 2025Although Enphase is an excellent inverter company for solar panels, and has treated its investors to a 420% year to date increase in value, I am feeling that CNN Business's analysis is too optimistic:
"The 10 analysts offering 12-month price forecasts for Enphase Energy Inc have a median target of 30.00, with a high estimate of 40.00 and a low estimate of 26.00. The median estimate represents a +21.85% increase from the last price of 24.62."
Solar panel companies have a tremendous amount of competition and also failure rate when we look at them historically. Due to the consistent innovation and subsequent outdating of previous technology, it is possible that a company like Enphase could be completely off the trading market within a decade. Yes, it could even happen in the next 12 months. I would not invest into this company if I wanted to sell within 6-12 months.
Do I think this stock is going to go under in the next 12 months? No, but I also don't think that it could hit a median of $30 within the next year.
Let the technology, market, and consumers play it out for the next 5 years and we will see this stock increase from $24.62 to over $35.
I have 70% confidence in this analysis. I am holding Enphase and PLUG to diversify into the energy sector.
[Long Idea] ENPHENPH poking out of a weekly bull flag here, also above its 50ma with the 9ema crossing over steeply.
I would like to see it pull back for a day or two to get a better entry, but that doesn't have to happen. Keeping it on watch for now.
Energy is a fundamentally bullish sector (in my opinion) going forward. Higher Oil prices will also drive market demand for solar, on top of already strong political demand for electrification.
