Last Updated on June 25, 2023 by Mathew Diekhake
Enphase still sits in a technical downtrend. It closed the week at 158.69, close to its lows for the year. It recently sold off to make a double bottom and close to the May lows when it dropped to 152. If Enphase stock were to follow its downtrend, it could dip to as low as 120 or less. Thus, I don’t think the bottom trendline is in play. Usually, when this happens, the stock remains close to the top trendline and breaks above it within the next few weeks. So I would expect Enphase to break the top trendline before the end of July. That top trendline by the end of July may only be roughly the same price it is today though, which means it could have a sideways month.
I still like Enphase for the rest of 2023. It didn’t boom in the first half with the rest of AI; it didn’t boom recently as a tech stock either. Energy stocks have been down so far this year and that is likely why Enphase has still declined. Numerous asset managers have highlighted the energy sector as wise to move into now, so many are expecting the bottom to be in for energy in general.
Enphase has a market cap of 22.48B and an income of 492.40M. Enphase has a short float of 4.85% and an RSI of 33.00. Its price to sales is 8.59 and its forward P/E is 21.54. Enphase is a strong buy for the medium to long investment horizon. For near-term investors, I don’t think it can go much lower than 150 without the US falling into a technical recession.