Shares of Enphase Energy (NASDAQ:ENPH) jumped 18.8% in October, according to data from S&P Global Market Intelligence, after reporting third-quarter 2020 results. And shares have continued their move higher, climbing 24.7% in the first week of November.
Revenue was down less than 1% to $178.5 million, but net income rose from $31.1 million a year ago to $39.4 million, or $0.28 per share. Results topped estimates, and that always helps a stock, but it's how Enphase performed compared with its rivals that was most impressive.
In the same quarter, SolarEdge's revenue was down 18% to $338.1 million, showing that a key rival is probably losing market share to Enphase Energy. And if Enphase can take market share from the industry leader in module-level power electronics, it could continue its incredible growth streak.
Results in 2020 have been strange because COVID-19 has slowed solar installations. But Enphase Energy's results are holding up well, and if it can continue to take market share from SolarEdge, that would be great news for this renewable energy stock long-term. At the very least, last quarter's results were a positive sign for the bullish investment thesis.