Here is a look at some of the top revenue growth stocks (this year and next). One thing that may standout is Enphase Energy (ENPH). Enphase is the only name that passed this high-growth screen AND has a positive ytd return (red bars). It also has positive net margins (indigo bars) and an impressive business. Enphase announced very strong earnings yesterday that exceeded expectations (and the company raised guidance). Shares are up more than 15% today so far.
We currently own shares of Enphase in our Disciplined Growth portfolio (it is a large position), and we have no intention of selling anytime soon. If you don’t know, Enphase makes microinverters used in home-based solar energy solutions. Its microinverters are more efficient than the competition, and it has a large (and growing) total addressable market opportunity (so it can keep growing rapidly for years to come).
Here is a more detailed description of the business:
Enphase Energy, Inc., together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter, which converts energy at the individual solar module level, and combines with its proprietary networking and software technologies to provide energy monitoring and control services. It also offers AC battery storage systems; Envoy communications gateway; and Enlighten cloud-based monitoring service, as well as other accessories. The company sells its solutions to solar distributors; and directly to large installers, original equipment manufacturers, strategic partners, and homeowners, as well as through its legacy product upgrade program or online store. Enphase Energy, Inc. was incorporated in 2006 and is headquartered in Fremont, California.