3 ‘Strong Buy’ Stocks That Are Set to Beat Earnings This Week

We’re well into earnings season, and so far, investors should be gratified by the results. Cumulatively, some 56% of the S&P 500 companies have reported so far; of those, 79% have beaten earnings estimates. Overall, earnings are up 45% in the past 12 months, and this is the fourth quarter in a row with sequential gains of 25% or more.

While the earnings season has been solid, there is one cautionary note – the immediate comparison is to 2020, when the COVID pandemic had a negative impact on a wide swath of sectors and pushed down earnings. Still, the rebound is significant, and indicates underlying economic strength.

With this in mind, we used TipRanks’ Earnings Calendar to get the lowdown on 3 Strong Buy tickers reporting quarterly results later this week. Let’s dive in and see what makes these stocks stand out.

Enphase Energy (ENPH)

We’ll start our look with Enphase Energy, which reports its 4Q21 earnings on February 8 after the markets close. Enphase is a designer and manufacturer of solar inverters, an essential hardware technology in solar power industry. Photovoltaic solar panels produce direct current (DC) electricity, which inverters convert to the alternating current (AC) power that is transported by the electric grip and used in our applications. Enphase was the first company to offer commercial-scale inverters on the market, and remains a leader in the solar power industry.

Heading into the Q4 results, a look back at Q3 can provide some insight. Enphase reported $351.5 million at the top line, a company record, and 60 cents per share earnings, the highest in over two years.

Looking ahead to the Q4 results, Enphase has high hopes. During the fourth quarter, Enphase launched its latest product, the IQ8 microinverter. This is billed as the most advanced such device on the market today, and is considered a ‘smart’ device, able to form its own microgrid to supply power during an outage – directly from solar energy. The IQ8 does not require a battery system during daylight. The higher price of the IQ8 device, compared to its predecessors, should…


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