Should Investors Be Watching These Top Solar Energy Stocks Right Now?
As most seasoned investors would know, the global green wave remains a relevant factor to consider in the stock market today. Because of this, investors looking for the best environmental stocks now would be tuning their radars towards solar energy stocks. For the most part, solar energy is a prominent branch in the renewable energy sector today. This week, solar energy stocks would be in the spotlight thanks to a recent report by the New York Times.
In essence, a report by the U.S. Energy Department indicates that President Biden is going all-in on solar energy. Namely, the Biden administration is reportedly looking to produce 45% of the nation’s energy supply with the sun by 2050. For some perspective, solar energy only accounts for 4% of the U.S’s electricity for the year 2020. To meet these targets, solar energy companies could see an uptick in demand for their services across the board. With possible applications for solar energy tech on both the organizational and consumer fronts, investors are spoilt for choices now.
For instance, JPMorgan (NYSE: JPM) analyst Mark Strouse recently highlighted Sunrun (NASDAQ: RUN). According to Strouse, Sunrun’s “strategically elevated inventory” positions it to outperform peers. The analyst hit RUN stock with an Outperform rating and a price target of $86. Notably, this would suggest an 86% upside over RUN stock’s current price of $46.22 as of 10:21 a.m. ET. Elsewhere, Daqo New Energy (NYSE: DQ) smashed earnings estimates in its second fiscal quarter posted last month. This is evident given its year-over-year gains of 230% in total revenue and 6,000% in earnings per share. With all this activity in the solar industry now, would one of these companies be top picks in the stock market now?
Best Solar Energy Stocks To Watch In September 2021
- First Solar Inc. (NASDAQ: FSLR)
- SunPower Corporation (NASDAQ: SPWR)
- Enphase Energy Inc. (NASDAQ: ENPH)
First Solar Inc.
First Solar is a manufacturer of solar panels and a leading global provider of comprehensive photovoltaic (PV) solar energy solutions. The company’s advanced thin-film PV modules represent the next generation of solar technologies, providing a competitive and high-performance alternative to conventional crystalline silicon PV panels. FSLR stock currently trades at $95.42 as of 3:48 p.m. ET and has increased by over 30% in the past year alone.
Last month, the company announced that it had broken ground on its third manufacturing facility in Ohio. The new 3.3-gigawatt DC facility, which is scheduled to commence operations in the first half of 2023, represents a $680 million investment from the company. When fully operational, the facility is expected to scale First Solar’s Northwest Ohio footprint to a total annual capacity of 6 GWDC. Impressively, this would make it the largest fully vertically integrated solar manufacturing complex outside China. This would also be in line with President Biden’s vision for keeping America competitive by investing in clean energy and creating jobs.
In the company’s second-quarter financials posted on July 29, 2021, First Solar reported net sales of $629 million. It also posted a net income per share of $0.77 for the quarter and ended the quarter with $2.1 billion in cash and cash equivalents. Besides, it announced an additional 3.3-gigawatt DC manufacturing expansion in India, contingent upon permitting, and pending approval of government incentives that are satisfactory to First Solar. Given the excitement surrounding the company, will you consider adding FSLR stock to your watchlist?
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Next up, we have SunPower, a solar energy stock that designs all-in-one residential and commercial solutions. Furthermore, it boasts unmatched personal customer service and the industry’s most comprehensive warranty. Its solar panels have one of the world’s highest efficiencies with its SunPower Maxeon cell technology. SPWR stock currently trades at $21.30 as of 3:49 p.m. ET and is up by over 90% in the past year alone.
In a survey released by the company in August, SunPower notes that high-profile grid failures, power outages, and mounting electricity bills are driving homeowners in the U.S. to strongly consider and purchase solar with attached storage. Key findings from the survey also include that many homeowners now live in fear of power outages, with two in five respondents worrying about monthly power outages. Also, the fact that solar energy is well-positioned to break into new income brackets, would incentivize SunPower to expand its customer base.
The company also reported strong financials last month. Notably, SunPower reported a GAAP Revenue of $308.9 million for the quarter, up by an impressive 41% year-over-year. This was driven by a number of its key initiatives making material progress. This includes increasing its dealer footprint and also expanding its financial platform to include loan servicing as well as announcing its strategic alliance with leading EV solutions provider Wallbox. Given that consumer demand for better and more resilient energy is increasing, the company says that more than 100 million homes in the U.S. alone could benefit from its solar and storage solutions. For these reasons, is SPWR stock worth watching right now?
Enphase Energy Inc.
Another major player to know in the solar energy space today would be Enphase Energy. In brief, the California-based company designs and manufactures software-driven home solar energy solutions. The likes of which span solar generation, real-time monitoring, and control software, and home energy storage. Through Enphase’s one-stop platform, consumers have access to all of this. By the company’s estimates, more than 36 million of its microinverters are in use across over 130 countries globally.
For investors looking to bet on growing consumer trends in the solar energy industry, ENPH stock could be a go-to. Now, the company’s shares trade at $164.04 as of 3:49 p.m. ET after gaining by over 150% in the past year. Would it be worth investing in at this point? If anything, the company appears to be kicking into high gear across the board. For starters, Enphase recently renewed its partnership with GRI Alternatives, a national nonprofit providing green energy solutions to communities. Through the current team-up, the duo would be bolstering the overall adoption of solar energy tech nationwide.
Additionally, Enphase also continues to gain momentum on the financial front. In its second-quarter earnings report, the company posted stellar figures. Notably, Enpahse raked in total revenue of $316 million for the quarter, marking a massive 151% year-over-year surge. Moreover, it also saw gains of 183% in net income and 173% in earnings per share over the same period. With all that said, will you be keeping an eye on ENPH stock this week?