3 solar stocks to sell, avoid or liquidate now

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The Biden-Harris administration recently announced $56 million in funding to strengthen innovation in solar manufacturing and recycling. Moreover, the The Senate passed the landmark climate billwhich could accelerate the growth of the solar industry.

Although the solar industry has experienced substantial growth over the past decade, supply chain constraints and trade instability have led to price increases. And pricing and supply challenges are expected to persist this year, leading to to the first annual market decline in 4 years.

Additionally, clean energy projects in the United States, including wind and solar installations, trended significantly lower in the second quarter. According to a report by American Clean Power, the industry faces a gigantic drop of 55% in the facilities.

Given the near-term challenges, we think it might be a good idea to sell, avoid, or liquidate fundamentally weak solar stocks Array Technologies, Inc. (ARRY), Sunrun Inc. (CLASSES) and Global Beam (BEEM) now.

Array Technologies, Inc. (ARRY)

ARRY manufactures and supplies solar tracking systems and related products in the United States and around the world. Its products include DuraTrack HZ v3 and SmarTrack.

ARRY revenue was $300.59 million for the first quarter ended March 31, 2022, up 21.1% year-over-year. However, its gross profit was $26.59 million, down 42.4% year-on-year.

Its net loss was $33.66 million, compared to net profit of $4.58 million a year ago, while its loss per share was $0.23, compared to a EPS of $0.04 over the prior year period.

Analysts expect ARRY’s EPS to decline 57.1% year-over-year to $0.03 in the yet-to-be-released quarter ended in June 2022.

ARRY’s Advanced EV/S of 2.67x is 61.3% better than the industry average of 1.65x. Its advanced P/S of 1.90x is 44.7% higher than the industry average of 1.31x.

Over the past nine months, the stock has lost 14.6% to close the last trading session at $18.68.

from ARRY POWR Rankings reflect his poor outlook. It has an overall rating of F, which indicates a strong sell in our proprietary rating system. POWR ratings rate stocks on 118 different factors, each with its own weighting.

Additionally, the stock has an F rating for stability and a D for value, sentiment, and quality. Click on here to access additional POWR notes for ARRY (Growth and Momentum). ARRY is ranked #15 out of 18 stocks in the F-rated Solar industry.

Sunrun Inc. (CLASSES)

RUN designs, develops, installs, sells, owns and services residential solar energy systems in the United States. It also sells solar energy systems and products, such as panels and racks, and generated solar tracks to customers.

RUN’s total revenue was $584.58 million for the second quarter ended June 30, 2022, up 45.7% year-over-year. However, its total operating expenses were $739.89 million, up 36.3% year-over-year. Additionally, its operating loss was $155.31 million, up 9.5% year-on-year.

RUN is ahead EV/S of 7.28x is 340.2% higher than the industry average of 1.65x. Its advanced P/S of 3.21x is 145.1% higher than the industry average of 1.31x.

Analysts expect RUN’s EPS to decline 182.8% year-over-year to negative $0.66 in 2022. Its EPS is expected to remain negative in 2023. Over the year elapsed, the stock lost 29.4% to close the last trading session at $34.14.

RUN has an overall F rating, which equates to a strong sell in our POWR rating system. Additionally, it has an F rating for Value, Stability, and Quality and a D rating for Growth and Sentiment.

Click on here to access the RUN rating for Momentum. It is ranked #17 in the solar industry.

Overall beam (BEEM)

A clean technology company, BEEM designs, develops, designs, manufactures and sells renewable energy products for electric vehicle (EV) charging infrastructure, outdoor media and branding, and energy security products.

For the first quarter ended March 31, 2022, BEEM’s revenue was $3.77 million, up 174.8% year-over-year. However, his gross loss rose 104.7% year over year to $305,000. Additionally, its net loss increased 82.1% year-over-year to $2.28 million, while its loss per share increased 71.4% year-over-year. at $0.24.

BEEM’s forward EV/S of 7.06x is 326.7% better than the industry average of 1.65x. Its advanced P/S of 7.93x is 504.5% better than the industry average of 1.31x.

BEEM’s EPS is expected to fall 12.2% year-over-year to negative $0.83 in 2022. And its EPS is expected to remain negative the following year. Additionally, it has missed EPS estimates in three of the last four quarters. Over the past year, the stock has lost 42.3% to close the last trading session at $17.02.

BEEM’s POWR ratings are consistent with this bleak outlook. The stock has an overall F rating, which equates to a strong sell in our proprietary rating system. Additionally, the stock has an F rating for sentiment and quality and a D rating for growth, value and stability.

We also rated BEEM for Momentum. Click on here to access all BEEM ratings. It is ranked last in the same sector.


ARRY shares fell $1.28 (-6.85%) in premarket trading on Tuesday. Year-to-date, ARRY has gained 11.34%, compared to a -12.59% rise in the benchmark S&P 500 over the same period.

About the Author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master’s degree in economics, she helps investors make informed investment decisions through her insightful commentary. After…

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