Enphase Energy Inc. (NASDAQ:ENPH) is one of the most oversold S&P 500 stocks in 2025 due to a 50% decline in 2024. Reasons include weaker demand for solar solutions, falling margins, and tariff impacts. Goldman Sachs downgraded Enphase to Sell with a price target of $32, citing policy changes affecting residential solar demand.

Goldman Sachs analyst Brian Lee predicts pressure on residential solar demand due to policy changes, including the expiration of tax credits in 2026. Enphase Energy faces downside risk in the post-incentive market after 2028. The entire residential solar outlook is being revisited, with Enphase positioned for heightened risk under new policies.

Wells Fargo highlighted Enphase Energy in a report on the revised Senate tax bill, emphasizing its importance in the sustainability stocks sector. Enphase is a global energy technology company specializing in microinverter-based solar and battery storage systems. While ENPH is an investment option, other AI stocks may offer greater upside potential and less downside risk.

For more stock insights, check out Harvard University’s top 10 stock picks and 20 undervalued momentum stocks that are taking off on Insider Monkey’s website. Note: This article is originally published at Insider Monkey with no disclosed interests.

Read more at Yahoo Finance: Goldman Turns Bearish on Enphase (ENPH), Slashes Price Target to $32