What happened 

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. 

So what 

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.

Roof with solar panels on a sunny day.

Image source: Getty Images.

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. 

Now what 

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. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.