On Wednesday, Enphase Energy (ENPH) traded at lows not seen in a year. ENPH stock fell by 14.9% to close at $78.47.
In the third quarter, Enphase reported a 30.9% Y/Y drop in revenue to $380.87 million. In Q4, it expects revenue in the range of $360 million to $400 million. Despite posting good cash flow, the company is suffering from ongoing weak demand. Long-term investors could wait out the short-term noise by betting on its potential. Alternative energy demand in solar will rise slowly. If that happens, Enphase could increase its revenue above $5 billion annually.
For now, avoid ENPH stock. Competition from China’s inverter suppliers is high, especially in Germany.
In the obesity drug sector, Hims & Hers Health (HIMS) dropped by nearly 10% yesterday. Novo Nordisk (NVO) wants the U.S. FDA to ban compounded semaglutide manufacturing. Investors may take advantage of HIMS stock decline. The firm is a potential leader in the telehealth sector. Semaglutide is a fraction of its overall business.
Storage supplier Seagate (STX) could trade as low as $100 next before it rebounds. The firm posted revenue of $2.17 billion, up by 49.7% Y/Y. In Q2, it expects revenue to top $2.3 billion. After posting both higher sales and guidance, investors will appreciate its strong profit margins.
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