Solar companies have stepped up their power to boost your portfolio, Jim Cramer said on a recent episode of his Mad Money show.
Cramer recommended four solar stocks, including Tesla (TSLA) – Get the Tesla Inc report. Tesla CEO Elon Musk was involved this week in civil action with some of Tesla’s shareholders over the SolarCity bailout in 2016.
Tesla was among the very few winners in Monday’s massive sell-off, closing 0.31% higher at $ 646.22; stocks have risen nearly 3.7% in the past month.
The Dow Jones Industrial Average posted its worst day of 2021 on Monday and stocks ended broadly and sharply lower as investors turned to safe-haven assets and assessed how rising COVID-19 cases could affect the recovery economic in the United States and around the world. The Dow ended down 725 points, or 2.09%, at 33,962, the S&P 500 fell 1.59% and the Nasdaq fell 1.06%.
At their lowest on Monday, the Dow blue chips fell 946 points, or 2.7%, the S&P 500 fell 2.2% and the Nasdaq fell 1.7%.
Bonds rallied, pushing the yield of the benchmark 10-year Treasury index Monday to 1.19%, the lowest in five months.
In addition to choosing Tesla as the solar leader, Cramer recommended three other companies.
He said the pressure on companies to tackle climate change, combined with the country’s aging power grid causing more and more blackouts, make solar stocks attractive.
First on Cramer’s list was First Solar (FSLR) – Get the first report from Solar, Inc., which avoided tariffs by manufacturing its exclusive panels in the United States. With the company’s production in 2021 running out, along with most of its production in 2022, Cramer said First Solar is a buy, even trading at 21 times profit. Shares of First Solar hit a low when the pandemic hit in March 2020. It has seen highs and lows since then, with the stock rising recently but still outside of its January 2021 peak.
Learn more about Cramer’s solar winners, including Generac Holdings (GNRC) – Get the report from Generac Holdings Inc., has grown steadily since 2020 and hit all-time highs last week, and Enphase (ENPH) – Get the report from Enphase Energy, Inc., on real money.