Why Did Enphase Energy Just Hit a 52-Week High?

  • Enphase (ENPH) soared to a new all-time high this morning.
  • This move comes amid analyst reports that Enphase could directly benefit from federal funding.
  • Additionally, two key acquisitions have investors bullish about the growth prospects of the company and ENPH stock.
ENPH stock - Why Did Enphase Energy Just Hit a 52-Week High?

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This morning, high-profile solar stock Enphase (NASDAQ:ENPH) surged to a new 52-week high. Interestingly, this surge in ENPH stock also represented an all-time high as investors look for quality companies in this sector with the opportunity to grow.

Much ado has been made of federal funding for this sector via the Inflation Reduction Act and other sources. However, various analysts have upgraded their outlook on Enphase, due in part to the likelihood the company directly benefits from this legislation.

Additionally, two key deals made by Enphase in recent weeks has really bolstered investor confidence. The company announced a takeover of German Internet of Things (IoT) provider GreenCom in a deal that’s anticipated to help the company in its goal of providing full home electrification. This news was followed up by an announced partnership expansion with BayWa, which covers distribution for Enphase’s batteries and micro converters in key European markets.

Let’s dive into what investors should make of this news.

Is ENPH Stock Still a Buy At These Levels?

As I pointed out in a recent piece, there is a lot to like about Enphase’s prospects right now. Aside from the expected federal funding for its business, which is a big positive, the market appears to be placing a larger emphasis on its European expansion. Enphase is honing in on Germany and other markets, which have been rattled with energy security concerns since the Russian invasion of Ukraine.

In this volatile market, investors are more likely to gravitate toward companies with sustainable catalysts. A push into renewable energy in key European markets, at a time when funding is flowing in, certainly provides a tailwind to be considered. Indeed, there’s a lot to like about how Enphase is positioned for growth.

Now, there’s a long road to growth ahead. That’s not to take away from Enphase’s existing technology, which is profitable and selling well under current conditions. However, investors in this market may want to be cautiously optimistic given the macro environment we’re in.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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