Ever thought about getting solar panels installed on your roof?
If you've ever been interested in seeing what it might cost, or what the payoff would be to install solar on your home, check out Google's Project Sunroof. Simply enter your address and it will tell you what it will cost to install solar and what the payoff over time would be. It also shows a google map of your house and how much sunlight it receives.
Pretty cool, right?
I came across this nifty little tool when researching a company in the solar energy space back in April. My subscribers and I ended up adding it to our portfolio thanks to an even better tool: the Maximum Profit system.
Bringing Solar To The Masses
The company in question, Enphase Energy (Nasdaq: ENPH) plays an important role in the solar process. In short, they will help you manage, convert and store the energy that those panels collect from the sun. The company's aim is to help advance the worldwide potential of renewable energy.
Over the years, solar power has become a more viable option as the technology has improved, which in turn has lowered the cost per watt, thanks in large part to companies like Enphase. Its goal is to continue increasing solar power and efficiency and extending its technological innovation.
Enphase delivers smart, easy-to-use solutions that connect solar generation, storage and communications management on one intelligent platform. It revolutionized solar with its microinverter technology and is the only company that produces a truly integrated solar-plus-storage solution.The company sells primarily to solar distributors who resell to installers and integrators, who in turn integrate its products into complete solar installation packages for residential and commercial system owners. It works with the majority of the primary solar and electrical distributors. In addition, Enphase also sells directly to original equipment manufacturers (OEMs) and strategic partners.
Enphase has shipped more than 19 million microinverters all over the world. In 2018, the company pulled in $316 million in sales, a 10.5% increase over the previous year. Cash flow jumped to $16.1 million last year, which is a massive boost over the $28.4 million loss that the firm reported in 2017.
Enphase's balance sheet is also solid, with about $117 million in total debt and about $206 million in cash -- a good liquidity ratio for a small-to-mid-cap energy company.
Now, all of that sounds pretty good. But the stock wasn't without risks...
Specifically, Enphase is exposed to regulation risk, as well as the Chinese trade tariff spat. Its microinverter products are manufactured in China and have been hit with a 10% tariff. These tariffs could increase to 25% if the U.S. and China can't come to an agreement. Such tariffs would have a negative impact on the demand for its products as prices would increase, which in turn would hurt sales and share price.
Action To Take
With all that said, I was confident the stock was a "buy," thanks to the Maximum Profit system, which gave the stock an overall score of 95 -- one of the highest scores we've seen all year.
As it turns out, trusting in the system paid off. It usually does…
Not only would I not have discovered ENPH if it weren't for our system, we also wouldn't be there to see the stock take off like a rocket almost immediately.
The system gave us a "sell" signal just a couple weeks ago, generating a massive 181% return for us in only five months. To put that into perspective, the S&P 500 returned only 2.9% over the same time frame.
The point is, if you don't have a system already, get one. It doesn't even have to be mine. In fact, one system I'd suggest you check out is the new one my colleague Amber Hestla will be revealing on September 24th at 1p.m. ET.
This system is so powerful it regularly delivers lightning-quick gains of 838% in just 3 days... 850% in 7 days... and even a staggering 1,400% in 2 days.