3 solar stocks expected to shine brightest in 2022

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Solar stocks, for the most part, ended 2021 on a weak note. Many investors have decided to take money off the table following the strong gains seen in alternative energy names. For example, the Dow Jones US Renewable Energy Equipment Total Stock Market Index fell 24.0% in 2021.

Yet, despite the volatility in solar stock prices, adoption of this alternative energy source is growing in popularity. According to a report by the Solar Energy Industries Association (SEIA), solar installations in the third quarter jumped 33% year-over-year (YOY), the best Q3 on record. Currently, “one in 600 US homeowners now installs solar every quarter.”

Nevertheless, the outlook for 2022 has been revised down due to supply chain constraints as well as rising global prices. In addition, the US solar sector has recently come under pressure. Firstly the US Department of Commerce refused to investigate allegations of unfair Chinese dumping.

in addition“A U.S. judge overseeing trade issues on Tuesday overturned then-President Donald Trump’s decision to allow the reimposition of tariffs on certain imported solar panels. The decision…is a defeat for some domestic manufacturers.

Finally, Wall Street wonders if President Joe Biden Building back better plane can still be resurrected. Readers of InvestorPlace.com may recall that Senator Joe Manchin refuse to support the social spending plan. The bill includes $300 billion in clean energy tax incentives and could allow solar installations to grow by 31% until 2026.

Regardless of the short-term challenges, renewable energy stocks should appeal to readers looking to invest for the brighter days ahead. With that information, here are three solar stocks that could gain traction in 2022:

  • First Solar (NASDAQ:FSLR)
  • Sunnova Energy International (NYSE:NOVA)
  • Sun Power (NASDAQ:SPWR)

Solar Stocks: First Solar (FSLR)

Source: Igor Golovniov / Shutterstock.com

52 week range: $67.71 – $123.13

First Solar supplies photovoltaic (PV) panels and modules and is particularly known for its thin-film technology. The Arizona-based company has production lines in Ohio, India, Vietnam and Malaysia. Wall Street has been keen on manufacturing expansion, particularly in India.

First solar reported Q3 results beginning of November. Revenue of $584 million implied a 37% year-over-year decline. Net income was $45 million, or 42 cents per diluted share, compared with $155 million, or $1.45 per diluted share in the year-ago quarter. Cash and cash equivalents ended the quarter at $1.9 billion. Free cash flow was $140.7 million, up $39.1 million from the prior year period.

“Commercially, we had a good quarter, growing our record year-to-date bookings to 10.5 GWdc,” CEO Mark Widmar said of the results.

Management recently signed multi-year contracts with bp light source and the energy giant BP (NYSE:BP) for its thin film photovoltaic solar modules. In addition, the US International Development Finance Corporation (DFC) has approved a $500 million loan for the next generation panel manufacturing plant in India.

FSLR stock is currently trading at around $84, a far cry from its multi-year high of $123.12 reached on November 1. Over the past year, the stock is down about 12%. Still, the 12-month median price forecast for First Solar is $115.

The shares are trading at around 22.92 times the trailing sell. Long-term investors who can tolerate some fuss might consider investing around $85.

sun noWill Energy International (NOVA)

Une bannière pour Sunnova Energy International (<a href=

Source: rblfmr / Shutterstock.com

52 week range: $22.07–$55.55

Based in Houston, Texas, Sunnova is a provider of residential solar and energy storage services in the United States. At the end of November, management announced a partnership with Charging point (NYSE:CHPT), providing electric vehicle (EV) charging equipment. When a customer makes a purchase, they have a facility for EV charging and solar power.

Management issued Third quarter metrics end of October. Revenue increased 37.3% year-on-year to $68.9 billion. The net loss of $25.9 million translated into a loss of 25 cents per diluted share. In the prior year quarter, net loss and loss per share were $73.3 million and 73 cents, respectively. The company ended the quarter with $951 million in free cash and cash.

Following the announcement, CEO William J. Berger said, “Our vision is to be a wireless power provider and our goal is to electrify our customers’ homes so they have the freedom to live their life without interruption.

Looking ahead, management gave its outlook for 2022, which included customer additions of 83,000 to 87,000 and revenue of $134 million to $154 million.

Sunnova stock hit an all-time high about a year ago on January 7, 2021. It currently sits around $23.91, down more than 44% year-to-date (YTD). The price-to-sales (P/S) ratio stands at 13.63x, and the 12-month median price forecast for NOVA shares is $56.

Analysts agree that the steady growth of solar power is almost unstoppable, especially given the politics of President Joe Biden. 2030 carbon free energy goal. Interested investors might consider keeping NOVA shares on their radar to buy the dips.

Solar inventory: Sun Power (SPWR)

a phone with the sunpower logo in front of an american flag

Source: Igor Golovniov / Shutterstock.com

52 week range: $18.55–$57.52

Based in California Sun Power provides fully integrated solar, storage and home energy solutions in North America. Despite supply chain disruptions and competitive headwinds in the industry, management is taking steps towards solid growth. For example, the recent acquisition of Blue Raven Solarenabled the company to expand into the Northwest and Mid-Atlantic regions.

Moreover, with the launch of SunPower Financial, the group now offers various financial products to facilitate and potentially make the installation of residential solar installations more affordable. by SunPower Q3 financial results released in early November showed strong growth in residential demand with record lead generation.

Improved turnover of 17.8% YoY to $323.6M. Non-GAAP net income was $9.8 million, or 6 cents per diluted share. A year ago, the non-GAAP net loss was $6.5 million and a loss of 4 cents per diluted share. The company ended the quarter with cash of $268.6 million, down $56.1 million year-over-year.

On the metrics, CEO Peter Faricy said“Now is the time for homeowners to embrace solar power and storage, with flexible financing options and clean-energy-friendly incentives currently being considered by Congress that make it easier for consumers to fight back. against the growing impact of climate change.

But the California Public Utilities Commission recently proposed to reduce incentives granted for excess electricity from rooftop solar panels into the grid. If accepted, these changes could mean headwinds for the company.

SPWR stock is currently hovering around $20, around 64% below its late January 2021 highs and down 18.6% over the past 52 weeks. The shares are trading at 13.07 times the trailing sell. The 12-month median price prediction for SunPower is $27. Interested investors might consider buying around these levels.

At the date of publication, Tezcan Gecgil did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Tezcan Gecgil, Ph.D., has worked in investment management for over two decades in the US and UK. In addition to formal higher education in the field, she has also completed all three levels of the Chartered Market Technician (CMT) exam. His passion is options trading based on the technical analysis of fundamentally sound companies. She particularly enjoys setting up covered weekly calls to generate income.

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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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