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CGC   13.28 (-0.75%)
GE   105.85 (+1.73%)
AMD   123.00 (+2.65%)
MU   68.87 (+2.01%)
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PFE   42.95 (-0.49%)
BA   212.28 (-0.32%)
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AAPL   148.96 (+0.18%)
MSFT   309.03 (-0.04%)
FB   326.14 (+0.47%)
GOOGL   2,754.00 (+0.10%)
TSLA   988.79 (+8.70%)
AMZN   3,325.56 (-0.30%)
NVDA   232.71 (+2.40%)
BABA   176.22 (-0.83%)
NIO   41.14 (+5.81%)
CGC   13.28 (-0.75%)
GE   105.85 (+1.73%)
AMD   123.00 (+2.65%)
MU   68.87 (+2.01%)
T   25.46 (-0.12%)
F   15.87 (-2.52%)
ACB   7.10 (+0.42%)
DIS   172.16 (+1.62%)
PFE   42.95 (-0.49%)
BA   212.28 (-0.32%)
AMC   37.10 (+1.37%)
S&P 500   4,570.13 (+0.56%)
DOW   35,775.11 (+0.27%)
QQQ   377.83 (+1.00%)
AAPL   148.96 (+0.18%)
MSFT   309.03 (-0.04%)
FB   326.14 (+0.47%)
GOOGL   2,754.00 (+0.10%)
TSLA   988.79 (+8.70%)
AMZN   3,325.56 (-0.30%)
NVDA   232.71 (+2.40%)
BABA   176.22 (-0.83%)
NIO   41.14 (+5.81%)
CGC   13.28 (-0.75%)
GE   105.85 (+1.73%)
AMD   123.00 (+2.65%)
MU   68.87 (+2.01%)
T   25.46 (-0.12%)
F   15.87 (-2.52%)
ACB   7.10 (+0.42%)
DIS   172.16 (+1.62%)
PFE   42.95 (-0.49%)
BA   212.28 (-0.32%)
AMC   37.10 (+1.37%)

7 Solar Stocks That Are Ready to Shine

Posted on Wednesday, September 29th, 2021 by MarketBeat Stafff
7 Solar Stocks That Are Ready to ShineInvestors have been frustrated by the renewable energy sector for decades. One reason for that is the technology was not ready for prime time, at least not in a cost-effective way. That is changing rapidly and with it the opportunity to be found in renewable energy stocks. However, within the renewable energy sector, wind and solar remain on top of the pyramid. The focus of this unique presentation is on solar stocks that are ready to break out.

Yes, President Biden’s infrastructure plan could have a significant impact on the sector. But interest in solar power has been growing for several years. One reason is that it’s become a national play. Solar used to be limited to areas like California and Florida, but improvements in the efficiency of the technology and the ability to capture the power for future use make it a viable option in more areas of the country. As evidence of this, the total amount of solar capacity installed throughout the country can power approximately 18 million homes.

As renewable energy options continue to expand, so will the opportunity for growth in solar. This is the beginning of what stands to be a multi-year trend. And there’s no time like the present for opportunistic investors to get involved.

#1 - Enphase Energy (NASDAQ:ENPH)

Enphase Energy logo

If you’re a fan of marketing, then I can give you a good reason why Enphase Energy (NASDAQ: ENPH) tops my list of solar stocks to buy. The company is solving one of the key issues that limit solar power acceptance. And anytime a company does that, it gives customers a reason to buy beyond price.

In this case, Enphase uses microinverter technology which converts direct current (DC) power from solar panels to alternating current (AC) power. The use case is as follows. Solar power does not generate in the evening and on cloudy days. Converting solar energy to AC power allows solar power to be stored and efficiently used at times when solar power is not being generated.

In addition to benefiting consumers, the company’s technology is also being embraced by installers because it doesn’t require a central inverter that could lead to a single-point failure that can take down an entire system.

Investors are concerned about the stock’s valuation. However, according to MarketBeat data on Enphase Energy, the stock may have a 20% upside from its current price of approximately $154. Analysts like the company’s accelerating revenue which for the first half of 2021 has nearly eclipsed the company’s total revenue for all of 2019. 

About Enphase Energy
Enphase Energy, Inc engages in the design, development, manufacture and sale of micro inverter systems for the solar photovoltaic industry. Its products include IQ 7 Microinverter Series, IQ Battery, IQ Envoy, IQ Microinverter Accessories, IQ Envoy Accessories and Enlighten & Apps. The company was founded by Raghuveer R.Read More 

Current Price: $179.45
Consensus Rating: Buy
Ratings Breakdown: 20 Buy Ratings, 10 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $184.49 (2.8% Upside)


#2 - Sunrun (NASDAQ:RUN)

Sunrun logo

One way you can tell that solar stocks are surging is with the number of solar panel installers being hired. And that’s a good reason to consider Sunrun (NASDAQ: RUN). The company bought Vivint Solar in 2020 in a deal that combined the two largest residential solar companies in the United States. Here’s where the bulls and the bears will spar.

The bears would say that even after the Vivint acquisition, the company’s market share is just 15%. And the company competes with private installers, which illustrates that there is a low barrier to entry. Bulls will argue that the Sunrun’s 15% market share is nearly double its nearest competitor and the company is showing strong year-over-year revenue growth.

RUN stock is down 37% in 2021 as investors are losing patience with the slow pace of the infrastructure bill moving through Congress. However, if you believe the analysts, this price drop can be a tremendous buy-the-dip opportunity. The consensus price target of near $80 would be nearly double RUN stock’s current price. And, Sunrun is on pace to easily outpace 2020 sales, a year in which the company saw sales skyrocket in the back end.

About Sunrun
SunRun, Inc engages in the design, development, installation, sale, ownership and maintenance of residential solar energy systems. It sells solar service offerings and install solar energy systems for homeowners through its direct-to-consumer channel. The firm also offers plans such as monthly lease, full amount lease, purchase system, and monthly loan.Read More 

Current Price: $53.65
Consensus Rating: Buy
Ratings Breakdown: 22 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $79.95 (49.0% Upside)


#3 - First Solar (NASDAQ:FSLR)

First Solar logo

First Solar (NASDAQ: FSLR) is not an installer of solar panels, but it’s a company that has its fingerprints on every other aspect of the process.  The company manufactures solar panels and it provides support and maintenance services for utility-scale photovoltaic (PV) power plants.

The company is a relatively young company having just been founded in 1990. In that short time, First Solar has established a global footprint on four continents. Like many solar companies, First Solar saw strong growth in 2020 despite the Covid-19 pandemic. But, also like other solar companies, FSLR stock took a big dip in the first quarter of 2021.

However, this is where the story gets better. As of this writing, First Solar has recovered most of its losses. The company is also one of the strongest solar companies from a fundamental standpoint. When the company reported earnings in late July it had a cash position of $2.1 billion and minimal debt. That combined with a P/E ratio that remains at the low end of its historical range makes FSLR stock look like a solid buy.

About First Solar
First Solar, Inc engages in designing, manufacturing, marketing, and distribution of photovoltaic solar power systems and solar modules. It operates through the Modules and Systems segments. The Modules segment involves in the design, manufacture, and sale of cadmium telluride solar modules, which convert sunlight into electricity.Read More 

Current Price: $108.69
Consensus Rating: Hold
Ratings Breakdown: 7 Buy Ratings, 11 Hold Ratings, 3 Sell Ratings.
Consensus Price Target: $103.42 (4.8% Downside)


#4 - Canadian Solar (NASDAQ:CSIQ)

Canadian Solar logo

Another company with a similar business model to First Solar is Canadian Solar (NASDAQ: CSIQ). As its name says, the company does business in Canada. However, one of the catalysts for CSIQ stock may very well be to long-term Operations & Maintenance Deals the company signed with two solar PV plus battery storage projects in the United States.

The deals were announced on September 7, 2021 but in the first week, it hasn’t had much effect on CSIQ stock. That is likely to change. Analysts give the stock a price target of $49.50 which is a 34% gain from its current price. Before that happens, however, the company will have to start generating revenue from some of its new contracts. That’s not likely to occur until 2023 which is one reason an analyst from GLJ Research downgraded CSIQ to a sell rating.

That’s not to say that Canadian Solar is struggling to generate revenue. In the company’s most recent quarter revenue was up 105% from the prior year which took into account the pandemic. Viewed through a wider two-year lens, revenue was still up an impressive 37% from the same quarter in 2019.

About Canadian Solar
Canadian Solar, Inc engages in the manufacture of solar photovoltaic modules and provides solar energy solutions. It operates through the Module and System Solutions (MSS) and Energy segments. The MSS segment involves in the design, development, manufacture, and sales of solar power products and solar system kits, and operation and maintenance services.Read More 

Current Price: $38.66
Consensus Rating: Buy
Ratings Breakdown: 5 Buy Ratings, 2 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $48.63 (25.8% Upside)


#5 - NextEra Energy (NYSE:NEE)

NextEra Energy logo

NextEra Energy (NYSE: NEE) may not be the first company that comes to mind when you think about solar providers. And of all the companies on this list, NextEra is certainly not a pure play on solar. However, it is one of the largest overall energy providers in North America.

The company distributes electricity throughout the United States and Canada. But it also has some wind distribution projects in addition to its solar projects. In that sense investors are not just buying solar energy, they are buying into a “both/and” energy story that is playing out in profitable ways in 2021.

NEE stock is trading near the top of its 52-week range and analysts are forecasting that there could be some near-term downside to the stock. However, NextEra offers something that most companies in this sector do not, an attractive dividend. In fact, the company joined the exclusive Dividend Aristocrats club this year when it increased its dividend payout for the 25th consecutive year.

About NextEra Energy
NextEra Energy, Inc is an electric power and energy infrastructure company. It operates through the following segments: FPL & NEER. The FPL segment engages primarily in the generation, transmission, distribution and sale of electric energy in Florida. The NEER segment produces electricity from clean and renewable sources, including wind and solar.Read More 

Current Price: $84.65
Consensus Rating: Buy
Ratings Breakdown: 7 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $85.25 (0.7% Upside)


#6 - Brookfield Renewable Partners (NYSE:BEP)

Brookfield Renewable Partners logo

If NextEra Energy is still too much of a “traditional” energy stock for you, consider Brookfield Renewable Partners (NYSE: BEP). As its name suggests, the company is 100% focused on renewable energy. However, like NextEra it is not 100% focused on solar energy. Its portfolio includes hydropower and wind power projects.

In fact, solar represents just a small portion of its portfolio at this time. But according to the company that is going to change in a big way. The company estimates that solar energy will make up the majority of its energy production by the end of the decade. A catalyst towards that goal is the company’s deal with Exelon in which Brookfield will acquire solar power from 600 of the latter company’s solar sites in the United States.

If you’re looking for massive share price growth, BEP is not for you. However, it is a solid dividend stock and currently has a yield of over 3%.

About Brookfield Renewable Partners
Brookfield Renewable Partners LP engages in owning a portfolio of renewable power generating facilities primarily in North America, Colombia, Brazil, Europe, India, and China.. It operates through following segments: Hydroelectric, Wind, Solar, Energy Transition, and Corporate. The Energy Transition segment distributes generation, pumped storage, cogeneration, and biomass.Read More 

Current Price: $38.27
Consensus Rating: Hold
Ratings Breakdown: 7 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $43.04 (12.5% Upside)


#7 - Solar Window (OTCMKTS:WNDW)

SolarWindow Technologies logo

Whenever I look at a field such as solar energy, I like to provide a little something for everyone. You’ve had some growth picks; and a couple of dividend darlings for income investors. But if you’re a speculator, Solar Window (OTCMKTS: WNDW) may suit your investing style. Solar Window is the creator of LiquidElectricity, a proprietary technology that applies a transparent coating of organic photovoltaic solar cells to glass, plastic, and films. The company has 120 patent claims.

WNDW stock is classified as a penny stock. And it’s down 46% for the year. However, a little perspective is needed. It appears that Solar Window got swept up in the renewable energy fervor that overtook the market at the beginning of 2021. Combine that with the appetite that retail investors had for penny stocks and WNDW stock climbed to over $30 per share. That was not sustainable nor did it fit the company’s history.

If you had bought the stock five years ago, you’d have a 12% gain. That’s nothing to brag about, but it fits a company that has a lot of potential but no product in market at this time.

About SolarWindow Technologies
SolarWindow Technologies, Inc engages in the commercialization, development, refinement, and marketing of SolarWindow technology. It provides the ability to harvest light energy from the sun and artificial sources and generate electricity from a transparent and coating of organic photovoltaic solar cells applied to glass and plastics.Read More 

Current Price: $6.24
Consensus Rating: N/A
Ratings Breakdown: 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: N/A

 

For individuals who embraced solar power in the 1980s, the time of vindication is here. What seemed like fringe, impractical technology is becoming a mainstream alternative as the nation launches its renewable energy future in earnest.

As solar power goes mainstream, solar stocks will start to pass that growth along to investors. And although many of these stocks have given up some impressive gains this year, investors shouldn’t be shy about buying the dip.

But like many speculative sectors, the expression “let the buyer beware” applies to solar stocks. Some solar companies are only in business because of subsidies. That’s not the case, however, with the companies listed in this presentation. These stocks represent some of the quality opportunities available in this sector. And now is as good of a time as any for investors to jump in. Some analysts project the global solar energy market to be worth $223.3 billion by 2026. That would equate to a compound annual growth rate (CAGR) of 20.5%.

20 High-Yield Dividend Stocks that Could Ruin Your Retirement Portfolio

Almost everyone loves a company that pays strong dividends. Who doesn't like receiving a check every quarter for simply owning a stock--especially if that stock is paying you back 4%, 5% or even 10% of its share price in annual income each year?. In a world where 10-year treasuries are yielding just above 2%, it seems hard to go wrong when buying a stock that's yielding significantly above the going rates on fixed-income assets. Unfortunately, the market rarely offers a free lunch.

While high-yield stocks may have a lot of near-term attractiveness, those same high-yields can often signal significant danger ahead. In some cases, it might mean that the company's dividend will stop growing or won't grow as fast as it used to. Worse yet, the company could cut its dividend, reduce the income you receive from owning the stock and drive down the value of the shares that you own.

4%-plus yields might seem like an easy opportunity to boost the investment income you receive, but high-yield stocks can just as often be a track reading to snare unsuspecting investors. It's not always easy to tell the difference though.

This slideshow highlights 10 high-yield dividend stocks that are paying an unsustainably large percentage of their earnings in the form of a dividend. These companies are all paying out more than 100% of their earnings per share in the form of a dividend, a sign that the advertised high-yield probably won't last.

View the "20 High-Yield Dividend Stocks that Could Ruin Your Retirement Portfolio" Here.





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