- By Noah Zelvis
- Aug 24, 2022
Across party lines in the United States and especially in the international sector, the move toward renewable energy is becoming more mainstream. But are these solar stocks enough to power your portfolio? Read our list of the best solar stocks that could benefit from this push.
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Best Solar Power Stocks
SunPower Corp. (NASDAQ: SPWR)
SunPower Corporation is all about providing complete solar solutions to both residential and commercial buildings. The company’s base of operations is in California, but its business spreads across the globe.
As an industry leader, SunPower has over 1,000 patents in the realm of solar innovation. With concerns over electricity bills continuing to increase, more and more families are looking to solar energy for the future.
SunPower is also adjusting its service to include financing options, making it easier for more households to make the switch. It also has a partnership with Wallbox, a company that installs solar products into homes.
SunPower is looking to focus solely on this market and sell its commercial ventures with the residential solar sector booming. The solar provider alsorecently acquiredBlue Raven, another solar company, to further expand its footprint.
SunPower’s stocks have been up and down of late as the market fluctuates. With favorable expectations for the next few years, this may be a great time to jump on board.
However, SunPower’s financial situation is still developing. The corporation reported revenue for the first quarter of 2022 of $350 million, up 46% from the $240 million total from the prior year.
Although it was an improvement from a loss of $48 million a year earlier, SunPower nevertheless reported a net loss of $28 million in the first quarter of 2022.
The market has been contemplative with SPWR down more than 10% this year. However, there is some indication that SunPower stock is constantly rising, which may make it a good solar company to invest in.
First Solar, Inc. (NASDAQ: FSLR)
First Solar is one of the most prominent solar companies on the market right now. It manufactures solar panels and offers support and maintenance for solar power operations.
The company was founded in 1990 and has built a very stable client base during its 30+ years in the business. Its business spans the globe, providing solutions on every continent except Antarctica.
First Solar recentlyscoreda major, multi-year deal with BP’s solar subsidiary Lightsource BP for up to 5.4 Gigawatts of solar modules. During the 2020 pandemic, First Solar took steps to streamline its operations, resulting in a huge cash balance and the potential for expansion.
While it does not currently pay a dividend, its excess cash reserves mean that First Solar could easily offer one in the future. A downturn in November affecting much of the solar industry brought share prices down, and First Solar is working hard to recover.
In fact, the company is now in a situation where it is once again profitable, has strong margins, and is growing its capacity.
It may be able to increase its capacity in the US over the next two years and strengthen its position as the largest solar manufacturer in the nation.
Deeper connections with large utility-scale developers, purchasers, and consumers help ensure that its product is the best and most reliable in the contexts where it chooses to grow.
Investors in stocks are therefore ready to pay a little bit more since they know what they are purchasing. With new business on the horizon and financial stability, First Solar is a very attractive pick.
Sunnova Energy International Inc. (NYSE: NOVA)
Sunnova Energy looks to lead the charge in bringing solar power to residential spaces. The company provides homes with solar panels and battery storage so energy can be used as needed. Its products are already being used in 37 states from coast to coast.
A partnership with electric vehicle charging equipment company ChargePoint allows Sunnova to bring solar energy to charging stations. Setting the standard in customer service, Sunnova doesn’t shy away from repairs or replacements to keep its customer base happy.
Like most solar stocks, share prices have been trending downward of late, even though shares are 50% higher than last year. Sunnova showed positive revenue numbers from last quarter as well.
The company’s market share for residential rooftop solar in the US is now between 4 and 5%, although it has been steadily increasing recently after an unfortunate downturn this year.
Only approximately 3% of the 84 million households in the United States have rooftop solar power, even though solar panels are an excellent energy source for single-family houses. Sunnova can consequently tap into a sizable total addressable value.
New incentives and increased electricity prices may be the catalysts to push many customers to solar in the future.
Brookfield Renewable Partners (NYSE: BEP)
Brookfield Renewable is another significant player in the renewable energy space. The company is a global leader in hydroelectric plants and works with solar, wind, and energy storage platforms.
As it looks to the future, Brookfield recognizes the potential for solar power and expects this form of energy to make up the majority of its production soon. Decreasing solar costs are helping to play heavily into this expectation.
Either way, Brookfield has some diversity by being involved with water and wind power generation. A new partnership with SSE Renewables allows Brookfield to expand further into the wind industry with tenders off the Dutch coast.
The use of renewable energy should indeed be expanded to reduce carbon emissions. It is economical to switch to solar and wind energy.
The production of energy using coal or gas is currently more expensive than that utilizing these two clean energy sources. In the future, their value arguments will be even more compelling.
These favorable breezes will help Brookfield Renewable. The business now has a development pipeline with a capacity of close to 69 gigawatts. Another 21 gigawatts are anticipated to be operational by 2030.
For this irrepressible stock, average yearly total returns in the neighborhood of 15% should be simple to achieve.
JinkoSolar Holding Co (NYSE: JKS)
JinkoSolar is one of the world’s largest solar panel manufacturers. The company is based in Shanghai, China, but has six production facilities all over the world.Its global presence and diversified client base already make it a strong stock pick in the solar industry.
On top of manufacturing operations, JinkoSolar also has one of the world’s largest solar research and development facilities.This top research allows JinkoSolar to develop a line of unique solar panels to meet the needs of individuals across the world.
One of JinkoSolar’s solar panels recently set a record for solar conversion efficiency, showing that they are truly an industry leader. In January, a JinkoSolar subsidiary Jinko Solar Co. completed its IPO and is now trading on the Shanghai Stock Exchange.
With the money from the IPO, JinkoSolar can expand its production capability and, in turn, increase revenue.JinkoSolar is one of the few solar developers seeing an uptick in share prices at present and sits 40% higher than last year.
This fits perfectly with JinkoSolar’s impressive financials from the first quarter of 2022.
JinkoSolar’s module shipments increased by 76% in the first quarter of 2022, while overall shipments increased by 56.7%. Although its sales decreased sequentially by 10% because of COVID-19-related restrictions in China during the quarter, they increased by about 86% YoY.
JinkoSolar has sacrificed profits to increase top-line growth. The firm is controlling expenses at the same time, which makes the stock appealing. Before investing, however, watch the long-term trends in JinkoSolar’s margins and debt levels.
The company plays an integral part in the global solar market, making it a promising option for any investment portfolio.
Best Solar Stocks To Buy
Maxeon Solar Technologies, Ltd. (NASDAQ: MAXN)
Maxeon Solar Technologies manufactures solar products, distributing them to all corners of the globe. The company is a newly established spinoff of U.S.-based Sunrun Inc. that took place in 2020.
It still carries the name Sunrun in its dealings in every country except the United States and Canada. Maxeon focuses on solar panels and cells, with several innovative products available. With over 1,000 solar patents, Maxeon continues to push its products to new heights.
The solar panel provider continues to make a name for itself, landing big agreements with Indian and American energy companies. Still finding itself on the stock market, Maxeon hopes to see these agreements boost revenue and stock prices.
The company began 2022 with another record-breaking DG performance in Europe and the global launch of its new SunPower One ecosystem.
In Europe, its module sales increased by over 75% year over year, and in certain nations, the percentage of AC module sales approached 40%.
It is now negotiating conditions for delivery in US Utility-Scale for 2024. In reality, the first module containers departed facilities in Mexico and arrived safely at its customer’s project site.
The scaling up of its Maxeon 6 and Performance line for the US market, which is essential for allowing its return to profitability in 2023, is one of Maxeon’s core transformation projects.
According to the company, supply chain circumstances are still difficult, but the company is still focused on executing these objectives.
Enphase Energy, Inc. (NASDAQ: ENPH)
Enphase Energy focuses on home energy solutions and is best known for semiconductor-based microinverters. These microinverters convert solar power from direct current to alternating current to power in a wide range of devices.
Since homes use alternating currents, this step is crucial before solar power can be used. Products have already sold very well in North America, and now the company is expanding into Europe and Australia.
In addition, Enphase offers entire solar packages to homes and businesses. The company revealed a 55% increase in revenue in its Q4 earnings report and beat estimates for earnings per share.
As a result of this forward momentum, its share price reached an all-time high in November. However, prices have dropped off since, but it gained momentum recently.
The company’s profits prospects haven’t changed much due to the recent share price increase, while it may have been slightly better for the solar sector as a whole.
It will be a challenge if interest rates keep rising, but the corporation has little influence over this. The possibility of rates pausing, for the time being, is probably what the market is getting excited about.
That would offer the market some stability and help us determine where Enphase’s demand for residential solar is.
As installers confront increased financing costs in 2022, growth is anticipated to slow down, albeit it could take some time to spread across the supply chain.
Sunrun Inc. (NASDAQ: RUN)
Sunrun manufactures, installs, and sells solar energy systems to residential solar energy customers. Equipment can be leased every month or can be purchased outright.
In the summer of 2020, Sunrunpurchased Vivint Solarwith an all-stock transaction, creating the largest consumer-facing solar company in the U.S. The company currently focuses all its attention on the U.S. market but hopes to expand outward in the future.
Sunrun added 30,700 customers this quarter alone, increasing its total number to over 600,000 users. The latest financial report shows that Sunrun exceeded its revenue and earnings per share goals.
Despite customer and revenue growth, shares have been trading in a downward direction so far this year, along with many other solar stocks.This drop could be a chance for investors to buy the dip, making Sunrun a stock to keep your eye on if you’re interested in consumer solar.
Should I Buy Solar Stocks?
Solar represents a small portion of the energy consumed in the United States each year, but that number is rapidly growing. A few years ago, solar power was only really available in sunny states like California and Florida. Today, solar power is available in most U.S. cities and states.
While solar energy is starting to impact residential growth significantly, it has also helped Fortune 500 companies save money. Apple, Amazon, Target, and Walmart have all invested heavily in solar facilities at various locations across the country.
In recent years, the public has grown to realize the importance of investing in clean energy sources and protecting our planet. This market is just now being primed for explosive growth, and you will not want to miss it.
That said, there are a few groundrulesto consider about the industry. First, not every solar company is built to make money for shareholders.
Some of these companies are staying afloat on subsidies or money from venture capitalist dollars, which is why it’s so important to do a thorough analysis before jumping in.
While some companies dabble in solar energy or own subsidiaries in the solar power industry, we primarily focus on pure solar stock plays.
Where to Buy Solar Stocks
Now that you’ve decided to go solar, you’ll need to invest in a few stocks. Solar companies are well-grounded and spend their time on major exchanges like NASDAQ and NYSE. Your best bet for perusing these markets is through Robinhood or Webull.
Webull offers a plethora of complex tools that experienced investors can sink their teeth into. These tools are perfect for deep dives to locate those hard-to-find tickers. Robinhood is a breath of fresh air for traders drowning in difficult-to-use platforms.
Its simple user interface will have even beginner investors trading in no time.
Best Solar Stocks: Conclusion
These are some of the best solar stocks on Wall Street right now. There is plenty of upside in the sector and plenty of room for growth. Overall, solar energy only accounts for around 2% of the total grid usage right now.
That number is primed to go up in the near future. The current political climate in the U.S. also bodes very well for solar companies, as democrats desire to position the U.S. as a leader in green energy solutions.
We can expect to see solar stocks go up in price even more over the next few years as more residential and commercial properties switch to solar power.
Solar Stocks FAQ
Look no further for answers to some of the top questions on solar stocks.
What Is the Top Solar Company?
This article has touched on the solar companies with some of the best business models, customer bases, and output.
Stocks like SunPower, JinkoSolar, and First Solar are often highlighted for their successes in the field. Enphase Energy has also been quite successful and is worth watching.
Is There A Solar ETF?
Several ETFs contain slices of the major solar companies today. ETFs do not provide much exposure yet because the solar energy sector is too small and thinly traded. As soon as one of these appears to be a viable stock pick for gains, you’ll see it on this list.
What Solar Company Does Tesla Own?
Tesla runs the solar company SolarCity. The company was founded in 2006 and was acquired by Tesla in 2016 for $2.6 billion. Since SolarCity is a full-fledged subsidiary of Tesla, it does not have a stock ticker of its own.
What is the Best Energy Stock to Buy?
As the world moves toward sustainability, clean energy is the way to go. In our 6 Best Clean Energy Stocks Under 10 Dollars article, we outline some of our favorite picks. VivoPower International and Energy Fuels Inc. both look to be strong picks at present.
What is the Biggest Solar Company in the U.S.?
First Solar sits at the top of this list with the largest annual sales and number of employees. The company has some competition at the top but looks to be a strong contender to hold the position for the foreseeable future.
Noah is an American copywriter on a mission to help clarify the nuances of the financial world. When he's not working, you’ll likely find him running or traveling.
Allied Market Research estimates that the global solar energy market will grow to $300 billion by 2032 from $94.6 billion in 2022. That growth should help to drive solar stocks higher throughout the next decade, making now a great time for investors to take a position.What is the best solar stock to buy right now? ›
|ENPH Enphase Energy||$124.85||17 Buy 6 Hold 2 Sell Moderate Buy|
|RUN Sunrun||$13.52||15 Buy 3 Hold 0 Sell Strong Buy|
|FSLR First Solar||$166.24||15 Buy 8 Hold 0 Sell Moderate Buy|
|DQ Daqo New Energy||$30.55||1 Buy 3 Hold 0 Sell Hold|
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Allied Market Research estimates that the global solar energy market will grow to $300 billion by 2032 from $94.6 billion in 2022. That growth should help to drive solar stocks higher throughout the next decade, making now a great time for investors to take a position.What solar company is Elon Musk investing in? ›
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About SOAR Energy
The company serves as the #1 fastest growing solar company in the United States and holds a mission of empowering homeowners with the knowledge and resources to make the switch to solar energy and to create a sustainable future for generations to come.
What is the biggest solar company in the United States? The biggest solar company in the U.S. is NextEra Energy. With a 2022 revenue of $20.956 billion, NextEra Energy is the largest solar company in the U.S. The second largest solar company in the U.S. is Avangrid, which had a 2022 revenue of $7.9 billion.Will solar energy stocks go up? ›
Zooming out, Percoco is rather optimistic about take-up of solar in the U.S. He is estimating that the market will increase by 15% this year over 2022. While he feels there will be a 10% pullback in 2024, that should reverse to a 10% gain the following year.What is the price prediction for solar stock? ›
Average Price Target
Based on 21 Wall Street analysts offering 12 month price targets for First Solar in the last 3 months. The average price target is $245.24 with a high forecast of $332.00 and a low forecast of $157.56. The average price target represents a 36.36% change from the last price of $179.85.
The growth of solar energy has been led by the U.S. and China with now looking like an ideal time for investors to buy solar stocks. Notably, the Zacks Solar Industry is still in the top 28% of over 250 Zacks industries at the time of this writing.
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Warren Buffett plans to invest $4 billion in wind and solar power projects. At present, when the world is facing an energy crisis. Warren Buffett, known as the "God of stocks", plans to invest nearly $4 billion US dollar to build more wind and solar power projects in Iowa, USA.Is first solar stock a buy sell or hold? ›
First Solar's analyst rating consensus is a Moderate Buy. This is based on the ratings of 23 Wall Streets Analysts.Why are solar stocks down so much? ›
Solar energy stocks have struggled the past few months, and there are multiple reasons. Earnings have been weak, rising interest rates make solar less economical, and commodity prices are falling.