Enphase Energy Inc. (NYSE:ENPH) shares moved skyward Thursday to begin the final session of 2020, on news the company will replace Tiffany & Co. (NYSE:TIF) in the S&P 500 effective Thursday, January 7.
The company has been in the news recently due to a resurgence of solar power.
Solar power, though around for decades, has seen a renewed interest recently. A push for cleaner energy sources, combined with improving economics for solar thanks to cost reductions, is mainly behind the growing enthusiasm. Several solar stocks soared to new highs in 2020, reflecting investors' positive sentiment for the sector.
Enphase has been one such company. Its strong performance during the year sent its stock surging a massive 554% in 2020 as of this writing. But do the company's fundamentals support the stock's steep rise?
Experts say Enphase has come a long way since 2016 when the company faced a cash crunch and struggled to generate profits. Over the years, Enphase has surely turned itself around by reducing costs while growing revenues. In the latest quarter, the company generated $39.4 million in net income. Its revenue growth in the last couple of years has exceeded that of its close rival SolarEdge Technologies (NASDAQ:SEDG).
ENPH began the last session of 2020 better by $5.78, or 3.3%, to $178.71.
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