We recently published a list of 10 Stocks To Trade Without Tariffs And Interest Rate Fears. In this article, we are going to take a look at where Enphase Energy, Inc. (NASDAQ:ENPH) stands against other stocks to trade without tariffs and interest rate fears.
The Federal Reserve this week decided to keep interest rates unchanged, causing Donald Trump to lash out at the Fed chief. Jerome Powell seemed satisfied with the current state of the economy and the job market. What he did not like was the high uncertainty prevailing in the market.
There’s a good reason why the uncertainty is causing problems for the Fed. It can’t reliably predict the future path of the economy if it doesn’t know what data to put in its models. This is pretty much the same problem that stock analysts have. With tariffs causing problems for American businesses, many investors are seeing their portfolios shrink.
In such a scenario, we decided to look at stocks that are largely protected from both tariffs and interest rates. This ‘protection’ comes from the fact that their bull thesis is unlikely to be impacted by either of these factors.
To come up with the list of stocks protected from tariffs and interest rates, we looked at the recently released list of Goldman Sachs’ top stocks with micro-driven volatility.
A solar panel array stretched across a large open field, its glimmering panels reflecting the sun.
Enphase Energy, Inc. (NASDAQ:ENPH)
Enphase Energy, Inc. is a developer, manufacturer, designer, and seller of home energy solutions. It offers semiconductor-based microinverter, microinverter units & related accessories, and other products and services. The company distributes its solutions directly to large installers, strategic partners, original equipment manufacturers, homeowners, and solar distributors.
Regardless of lower battery sales, Enphase Energy is growing its revenue by 6% QoQ. The battery segment is expected to recover in the next quarter. This rebound seems a good sign as some investors in the U.S. were recently concerned about Tesla’s powerwall competition. The upcoming fourth-generation battery is designed to occupy 60% less space and it will also lower installation expenditures. Moreover, the company plans to launch a new battery by 2026.
“Our fifth-generation battery will come out in Q1 2026, one year from today. And that also has a drastic cost reduction associated with it. I’ll give you more highlights on why in the next call. That will use prismatic cells. It’s got an energy density that is 50% higher.”
The company possesses a solid net cash position as it ended the recent quarter with a strong balance sheet with $1.8 billion of cash and $1.3 billion of debt. This indicates that the company is capable of paying off its long-term debts without putting any financial strain on its shareholders. Although the stock struggled during the last year, losing almost half its value, it has been rather stable in the last 6 months.
Overall, ENPH ranks 2nd on our list of stocks to trade without tariffs and interest rate fears. While we acknowledge the potential of ENPH as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as ENPH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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