Enphase Energy (ENPH) May Be a Steal on Weakness

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Enphase Energy (ENPH) may be a steal of weakness.

After plummeting from about $280 to $173, the stock appears to have caught strong double bottom support. Helping, the stock is also severely oversold on RSI, MACD, and Williams’ %R.

The last few times the stock became this technically oversold, it bounced back nicely.  In October 2021, it ran from about $144 to $280.  In May 2021, it ran from $109 to $200.  In June 2020, it ran from about $40 to $120.  In March 2020, it ran from about $22 to $70.

All of those opportunities were spotted by simply using RSI, MACD, and Williams’ %R.  From a current price of $184.33, we’d like to see ENPH retest $280, near-term.

Fundamentally, there’s a lot to like here, too.

In its most recent earnings report, the company posted total revenue of $352 million, which was up 96% year over year.  Non-GAAP income came in at $84 million, or 60 cents per diluted share from $41.8 million year over year.

In addition, according to CEO Badri Kothandaraman,”Strong demand for our microinverter systems continued in the third quarter of 2021, while shipments of our Enphase Storage systems increased approximately 51%, compared to the second quarter of 2021.”

At the moment, ENPH is down too much, too soon.

We’d like to see it bounce from $184.33 back to $280.  At current prices, it’s a steal.