3 solar stocks to watch as the clean energy campaign accelerates

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Solar energy has become one of the main forms of renewable energy sources as part of the continuous transition to environmentally friendly alternatives. Notably, the United States is also witnessing this rapid transition. By a report According to the US Energy Information Administration, renewables are expected to account for the bulk of new power generation capacity in 2021, with solar power accounting for the largest share at 39%.

Additionally, the report states that developers and plant owners estimate the addition of utility-scale solar capacity will set a new record in 2021, adding 15.4 gigawatts (“GW”) of capacity to the utility scale. network, followed by nearly 12 GW added last year, based on additions reported through October at 6.0 GW and planned additions of 5.7 GW in the last two months of 2020.

Meanwhile, both residential and non-residential solar sectors are expected to experience growth in the future. In particular, by a report by the Solar Energy Industries Association (“SEIA”), the residential solar segment is expected to grow 13% in 2021 taking into account labor shortages towards the end of 2020 as well as demand related to reduced demand. Solar Investment Tax (“ITC”) in 2022. In particular, SEIA has revised up its 2021 outlook for Florida and Texas, with installers continuing to report increased pipeline sales. Each of the markets is expected to install more than 300 megawatts in 2021, ranking only behind California. Additionally, SEIA said a combination of project delays and ITC demand pull is expected to take the non-residential solar segment to an all-time high in 2021, at nearly 2.4 GWdp.

Lower costs of solar aid in rapid adoption

One of the factors that has boosted solar power is the rapid decline in installation costs. In fact, by another report by SEIA, the cost of installing solar power has fallen by more than 70% over the past decade. In particular, the report indicates that a mid-sized residential system has gone from a pre-incentive price of $ 40,000 in 2010 to around $ 20,000 in 2020.

Biden’s focus on renewables is likely to boost industry

The solar industry is also expected to receive a boost from President Joe Biden’s focus on renewable energy to tackle climate change. To this end, President Biden signed an executive order on the day of his inauguration as president on January 20, and the United States has joined the Paris Agreement, which aims to strengthen the global response to the threat of change. climate.

3 actions to watch

The solar industry in the United States appears poised for growth in the future as the focus shifts to renewables to tackle climate change. Therefore, now seems like the right time to take a look at which solar-focused companies might benefit the most from this recovery going forward. In particular, we have selected three of these stocks which carry a Zacks Rank # 2 (Buy) or 3 (Hold). You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

Enphase Energy, Inc. ENPH, along with its subsidiaries, designs, develops, manufactures and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company currently has a Zacks Rank # 2. Zacks’ consensus estimate for current year earnings has risen 9.5% in the past 60 days. The company’s expected profit growth rate for the current year is 43.1%.

Array Technologies, Inc. ARRY provides solar tracking solutions and services for large scale projects. The company currently has a Zacks Rank # 3. Zacks’ consensus estimate for current year earnings has risen 2.4% in the past 60 days. The company’s expected profit growth rate for the next five years is 22%.

First Solar, Inc. FSLR provides solar photovoltaic energy solutions in the United States and internationally. The company currently has a Zacks Rank # 3. Zacks’ consensus estimate for current year earnings has risen 0.3% in the past 60 days. The company’s expected profit growth rate for the current year is over 100%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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