TAN - Enphase: Bad News Baked In Shares Stabilizing Ahead Of Q1 Earnings

2024-04-07 20:45:19 ET

Summary

• Oil prices rise to highest level since October while yields have been on the rise, akin to trading action in 2022 when solar stocks suffered.
• Enphase Energy sports a modest P/E compared to its history and a low PEG ratio while its free cash flow is positive.
• With the stock outperforming the SPX since its capitulation low in November, I see mixed technical risks while its fundamental valuation suggests upside.

Oil prices are back on the rise, finishing last week at the highest mark since October. The Energy sector has been very strong as renewed selling pressure in the bond market has brought about feelings of 2022. In past market cycles, bull markets in WTI and Brent have coincided with healthy returns in the solar energy patch. ...

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