If you had invested heavily in Enphase during 2022, you would have faired very well in this bear market. Sadly besides institutions, not many people did. Enphase benefitted from the war which is knowledge beyond most retail investors. And it was the one small market cap company at the time that had the best chance to rise to become an energy sector behemoth, hence why so many asset managers had no hesitation piling into this stock. I, unfortunately, missed making money on this stock, but there may be one last chance for all of us yet.
Meet Kevin is expecting a stock like Enphase to drop once there is pain in the housing market [because once housing investors start feeling the pain of the recession, they will slow in their solar spending]. This sounds logical enough. If Kevin is correct, Enphase could capitulate once the US housing market does. And if so, that would be your final chance to buy it at a cheap price.
It arguably wouldn’t be a bad time to buy Enphase tomorrow anyhow. We can see an ascending triangle has formed on its current stock chart, with the stock price toward the bottom of that triangle. Typically that is a bullish position for a stock to be in. And since we know the news was positive after the earnings call several hours ago, there is a strong chance this stock continues to rise toward the top of its ascending triangle in the coming weeks.
Image credit: FinViz