On Friday, I talked about how the psychology of human emotions can get in the way of generating the best portfolios. But thanks to my Project Oracle, I don’t have to worry about psychology or emotions.
The secret to this is simple: Through hundreds of hours of research, I discovered how an elite type of stock consistently outperformed the broad market, year in and year out. Then, I isolated the eight key qualities that these super-performers shared.
In today’s Market 360, let’s take a closer look at one of these super-performers and I’ll show you just how much my subscribers have benefited from my Project Oracle system.
Enphase Energy, Inc. (NASDAQ:ENPH) developed the first microinverter system back in June 2008. Microinverters are vital to solar panels, as microinverters convert sunshine into usable electricity for homes and businesses.
In the past 14 years, Enphase Energy has shipped more than 52 microinverters around the world. The company now has more than 16 gigawatts DC of Enphase-based systems installed in 145 countries.
The company also has stunning fundamentals, as it revealed record results for its third quarter on October 25. The company shipped 4.34 million microinverters during the quarter, which translates to about 1m709 megawatts DC, as well as 133.6 megawatt hours of Enphase IQ Batteries. Demand for the company’s microinverters and batteries was most prevalent in North America and Europe.
In turn, Enphase Energy achieved record third-quarter revenue of $634.7 million and earnings of $1.25 per share. That represented 80.6% year-over-year revenue growth and 108.3% year-over-year earnings growth. The consensus estimate called for earnings of $1.08 per share on $612.21 million in revenue, so Enphase Energy beat earnings estimates by 15.7% and revenue forecasted by 3.7%.
Looking ahead to the fourth quarter, Enphase Energy expects revenue between $680 million and $720 million. That’s up from $412.72 million in the fourth quarter of 2021, and the forecast is also nicely higher than current expectations for $660.21 million.
In the wake of its quarterly report, ENPH shares soared 10% and more than 21% higher for the week. In fact, shares of the company have popped nearly 10% or higher after almost every earnings beat in the past couple years.
Earnings analysis is a big part of my Project Oracle system… so you can see why Enphase Energy made the cut!
The Next Wave of Super-Performers
Project Oracle flagged this stock as a good buying opportunity to my Accelerated Profits subscribers back in March 2020. Since then, ENPH is up nearly 450%!
The reality is my Project Oracle system finds fundamentally superior stocks that boast increasing sales and earnings growth and positive guidance. Case in point: My Accelerated Profits stocks have superior forecasted sales (48.8%) and earnings growth (141.6%), as well as a strong earnings surprise history (41.4%). Compare this to the S&P 500’s 2.2% earnings growth and 10.5% revenue growth. The average earnings surprise is a measly 1.9%. A flight to quality remains underway, led by companies with strong sales and earnings, i.e., my Accelerated Profits stocks.
While ENPH continues to outperform, I am constantly adding new Project Oracle stocks to my Accelerated Profits Portfolio. In fact, I will be adding a brand-new buy based on my Project Oracle system’s findings to the portfolio next week.
The stock surged in the wake of its blowout earnings report for its third quarter, and I look for this trend to continue in the fourth quarter. So now is the time to jump in before its next big rally.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Enphase Energy, Inc. (ENPH)