Make a list of the best solar stocks to watch right now? Here are 3 for your list.
Solar stocks are highly sought after by investors. These stocks have seen considerable gains in the stock Exchange in 2020 alone. While Joe Biden has run on a platform for a clean energy revolution, things certainly look sunny for the industry. One of the president-elect’s plans is to invest more than $ 400 billion in the clean energy industry over the next 10 years. Biden will also create ARPA-C, a new research agency that focuses on accelerating climate technologies.
Biden also promises to put the United States on an irreversible path to achieving economy-wide net emissions by 2050 at the latest. Achieving this feat will undoubtedly require the efforts of the automotive industry. ‘solar energy. Solar power accounted for just 1.7% of total energy use in the United States in 2019. This number will undoubtedly increase in the years to come as we move away from fossil fuels. A solar powered world would be a cleaner, more sustainable place to live after all.
Recently, a leading solar developer and installer, Sunrun (RUN stock report) announced a partnership with Southern California Edison (SCE) to create a virtual power plant. Southern California Edison is one of the largest network operators in the country and is a subsidiary of Edison International (EIX action report). Sunrun will supply 5 MW of capacity to SCE during high demand events such as extreme heat waves. Sunrun’s move could pave the way for more partnerships like this for the solar energy industry. As investments in renewables accelerate at an unprecedented rate, here are the top 3 solar stocks to watch before December 2020.
Best solar stocks to buy [Or Sell] Before December 2020: Enphase
Phase (ENPH stock report) is an industry darling that provides an all-in-one solar and storage system. The company is a leader in microinverter-based solar storage systems and has had a superb performance on the stock market this year. Solar panels might be what we see, but it’s the inverter that does all the real work. Enphase is found to offer the most advanced inverters on the market. Shares of the company have risen more than 330% year-to-date and were trading at $ 131.52 at 9:32 a.m. ET.
The company had just announced its third quarter results last month, to the delight of investors. The company posted a record 41% increase in gross margin and revenues of $ 178.5 million. Enphase delivered 478 MW of direct current or 1.4 million microinverters in the third quarter alone. These staggering numbers could be the reason for strong optimism among investors. For the company’s fourth-quarter financial outlook, Enphase expects revenue of between $ 245 million and $ 260 million.
Recently, the company announced that it has entered into a deal with MSpectrum. MSpectrum is a solar energy supplier headquartered in Pasig, Philippines. He will help distribute Enphase products to residential and commercial installers across the Philippines. Additionally, the Enphase IQ 7 product family is expected to be available through MSpectrum during the first quarter of 2021. With so many positive developments surrounding the company, will ENPH stock be one of the best solar stocks to buy in? this moment ?
Best solar stocks to buy [Or Sell] Before December 2020: First Solar Inc.
Prime Solar (FSLR Stock Report) is an Arizona-based company that produces solar power systems and solar modules. The company uses thin-film semiconductor technology to manufacture its solar modules. First Solar was the first company to cut its manufacturing cost to $ 1 per watt in 2009. The company hopes its Series 6 panel will hit an all-time low of just $ 0.14 per watt by 2024. This testifies the cost of solar energy. have declined considerably and will accelerate the adoption of this form of renewable energy. First Solar shares have risen 178% since the March lows.
The company just announced its third quarter financial results in October. In addition, First Solar reported net sales of $ 928 million, representing a 44% increase quarter over quarter. This gain is due to an increase in the volume of modules sold to third parties. The company also reported earnings per share of $ 1.45 and net cash of $ 1.4 billion. With so much cash on hand and the growing solar energy market, the company could increase its capacity in the near future. First Solar has spent around $ 1 billion over the past 3 years to upgrade its capacity to the new 6 Series solar panels.
The company is now focused on manufacturing solar panels. In fact, it might be the right decision for the business as businesses modularize and specialize to improve the gross margin of the business. With a forecast of 1.8 GW to 2.0 GW of shipments in the company’s fourth quarter, First Solar will have generation capacity of approximately 7.6 GW for 2021. In light of the guidance of the management team, could FSLR stock become one of the best stocks to buy right now?
Best solar stocks to buy [Or Sell] Before December 2020: NextEra Energy
NextEra (NEE stock report) is the world’s leading producer of wind and solar energy. The company has a monstrous generating capacity of 45,500 MW and will undoubtedly play a central role in the Biden presidency. As one of the country’s largest capital investors in infrastructure, NextEra has forecast investments of $ 50-55 billion for 2020 to 2022.
The company is essentially a holding company for three different business lines, Florida Power & Light (FPL), Gulf Power and NextEra Energy Resources. In addition, FPL provides electricity to more than 5 million customers in Florida. Investors will own a successful utility company and its rapidly growing renewable business by investing in NEE stocks. Most of the company’s electricity revenue actually comes from residential customers. This would be good news for NextEra as more and more people are working from home and would increase power consumption. NextEra Energy Resources is a world leader in battery storage.
In NextEra’s last fiscal year, the company reported a 19% and 10% year-over-year increase in net income for Gulf Power and FPL respectively. A huge advantage with NextEra is that it pays a dividend yield of 1.8%. Thanks to the constant cash flow from its electrical business, this makes the company a strong dividend payer. The company also expects strong profit growth in the coming years. With the widespread adoption of solar power, will you consider having NEE stocks in your portfolio?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.