Why This Energy Stock Would Do Well in 2023
Energy stocks had a good run in 2022. This is in part due to the Russian-Ukrainian war, which resulted in higher demand for energy-related service. The run seeks to continue in 2023 as some energy companies are looking at ways to diversify. Enphase Energy is poised to give investors a project 50 percent return in the first quarter of 2023
avatar
Precious Njoku is a Financial Writer with extensive knowledge about the stock market.
2022-12-31 11:30

Enphase Energy, Inc. (NASDAQ: ENPH) is a global energy technology company that designs, manufactures, and sells microinverter systems for the solar photovoltaic industry. The company's microinverters convert direct (DC) electricity into alternating (AC) electricity, allowing individual solar panels to operate independently and more efficiently. Enphase Energy's microinverter systems are used worldwide in residential, commercial, and small utility-scale solar installations.

As an investor, it is crucial to consider the ever-changing energy landscape and the potential for economic growth and returns. Energy stocks can be a good investment for several reasons.

First, the energy sector is an integral part of the global economy, and as such, it can be a stable and reliable source of returns for investors. Energy stocks also have the potential to benefit from rising energy prices, as the profits of energy companies are often tied to the price of the commodities they produce.

In addition, many energy companies pay dividends, providing a steady income stream for investors.

Enphase Energy Inc (NASDAQ: ENPH) is a beautiful stock to consider in 2023. This is due to the company's focus on innovating within the energy storage and distributed energy markets, along with its strength in the solar energy sector and the potential for significant returns due to the continued growth of the renewable energy industry.

Enphase Energy Inc (NASDAQ: ENPH) is a leader in distributed energy solutions and storage technologies. The company designs, manufactures and sells residential solar energy storage and modules and residential and commercial photovoltaic systems. This portfolio of products and services positions the company as a leader in the rapidly evolving distributed energy storage industry. Moreover, the company's microinverters and energy storage systems have been recognized for their superior efficiency and reliability, thanks to Enphase's Intelligent Energy Platform.

The company has achieved 20% distribution efficiency compared to traditional systems, and the platform supports up to 300 microinverters over a single string—equivalent to up to 16kW of AC output power.

The solar energy industry saw record growth in 2020, and Enphase Energy Inc (NASDAQ: ENPH) was one of the big winners. In the fourth quarter alone, the company saw a 23% year-over-year increase in revenue, driven primarily by its strong presence in the US residential solar energy market.

ENPH's outlook for 2022 has been optimistic, with the company projecting a full-year GAAP operating income of between $8 million and $20 million versus a loss of $578 million in 2021. The company also estimates its cash flow to range from a net cash burn of $25 million to net cash provided by operating activities of $15 million in 2022.

The company was also one of the leading suppliers of microinverters in Nevada's 2018 solar energy expansion.

Investors should be incredibly bullish on Enphase Energy Inc (NASDAQ: ENPH) in 2023 due to its strong market presence and potential to capitalize on the global transition to renewable energy. The company has received a $30 million follow-on investment from its strategic partner, EDF Renewable Energy Inc., which gives it a well-stocked war chest to expand its reach and develop other innovative solutions.

Given the strength of the solar energy industry and Enphase Energy Inc's (NASDAQ: ENPH) unparalleled ability to innovate in energy storage and distributed energy solutions, the company is well-positioned for continued success in 2023 and beyond.

Investors looking for high returns from a company innovating within the energy industry should consider Enphase Energy Inc (NASDAQ: ENPH) as an attractive stock in 2023.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

positive
negative
Published On
2022-12-31 11:30

avatar
About the Author
Precious Njoku is a Financial Writer with extensive knowledge about the stock market.


buy-coffee
You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

NVIDIA Earnings: Will They Even Matter?
Let’s examine the bear and bull case for NVIDIA’s earnings next Wednesday.
By Mike Sakuraba | 2 weeks ago

2 Stocks I'm Avoiding as Markets Hit New All-Time Highs
People like to throw around the term bubble a lot when the market goes up a large amount in a short time. But is it really a bubble or did they just miss out on the action? I usually say it’s the latter.
By Mike Sakuraba | 3 weeks ago

2 Earnings Calls I'm Watching Next Week
It’s been a while since I’ve done this but it was a good practice and forced me to actually listen to the earnings calls of companies I invest in.
By Mike Sakuraba | 3 weeks ago

2 Stocks You Can Still Buy at All-Time Highs
For some reason, we have always been taught to try and buy low and sell high. While that might seem logical, it is a good way to miss out on buying some of the best stocks.
By Mike Sakuraba | 3 weeks ago

24 Assets to Invest in for 2024: Part 7
In Part 6, I spoke about chip stocks, Axon (NASDAQ: AXON),Celsius (NASDAQ: CELH),and the iShares Bitcoin Trust (NASDAQ: IBIT).
By Mike Sakuraba | 4 weeks ago

2 Stocks I'm Buying When Markets Pull Back
Here are 2 stocks I’m prepared to pull the trigger on as soon as the market pulls back.
By Mike Sakuraba | 4 weeks ago

24 Assets to Invest in for 2024: Part 8
In Part 7, I spoke about Rivian (NASDAQ: RIVN),Chainlink, and Evolution AB (OTC: EVVTY)
By Mike Sakuraba | 4 weeks ago

Tesla Bears Rejoice: Another Bad Quarter from Tesla
I think the next year or two is going to be tough for the company and the stock.
By Mike Sakuraba | 1 month ago