Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Enphase Energy Stock Jumped 20.6% in January

By Maxx Chatsko - Feb 7, 2020 at 2:12PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors continue to gobble up shares of the fast-growing company.

What happened

Shares of Enphase Energy (ENPH -0.65%) rose over 20% last month, according to data provided by S&P Global Market Intelligence. There wasn't any company-specific news aside from a bevy of newly announced partnerships. The solar hardware developer has announced collaborations with seven different partners on at least three different continents since the beginning of 2020. 

That serves as a reminder of the significant growth opportunity in utility-scale and small-scale solar installations, which helped Enphase Energy to achieve profitable operations for the first time ever in 2019. In fact, the business has been one of the hottest growth stocks on the market recently. Shares jumped 19.5% in December, 415% in 2019, and have now gained 713% since the beginning of 2019.

A worker installing rooftop solar panels.

Image source: Getty Images.

So what

As The Motley Fool's Travis Hoium recently noted, Enphase Energy announced at the end of 2019 that 700 different installers have tapped the company's IQ 7 microinverters for use in their own products. The momentum should continue for the foreseeable future. 

The amount of electricity generated from solar panels in the United States eclipsed 100,000 gigawatt-hours in 2019 for the first time ever, according to data compiled by the U.S. Energy Information Administration. While much of the growth has been driven by utility-scale installations, about one-third of all electricity generated from solar panels is derived from small-scale installations, such as commercial and rooftop setups. 

Now what

Whether solar panel manufacturers tap the company's microinverters in their own module systems or installers use the company's energy management systems to add convenience for customers, Enphase Energy has done an excellent job leveraging the strength of small-scale solar both in the United States and globally. New products, especially those in energy storage applications, should keep the growth engine humming along in 2020.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Enphase Energy, Inc. Stock Quote
Enphase Energy, Inc.
$191.34 (-0.65%) $-1.25

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.