CNBC's Jim Cramer on Friday said investors should look into buying stock of Enphase , which soared this week even after reporting a poor fourth quarter that missed Wall Street's expectations.
Cramer said he was encouraged by Enphase's outlook, as management predicted a bottom followed by a rebound for the solar industry, which has suffered in a high interest rate environment.
Enphase is emblematic of the solar industry as a whole, Cramer said, adding that the Fed's relentless rate hikes slowed sales, leading to an inventory glut.
To Cramer, Enphase looks like a "destocking" story, meaning the company has had to burn through excess inventory.
"With Enphase, the stock already caught fire this week, but we're three to six months out from the moments where the numbers start genuinely improving, which means it's not too late to buy Enphase," he said.
Persons:
CNBC's Jim Cramer, Friday's, Cramer, we're, Enphase