4 solar stocks to avoid like the plague in November By StockNews

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© Reuters. 4 solar actions to avoid like the plague in November

Efforts by governments around the world to reduce carbon emissions and significant investments in the renewable energy industry are expected to spur the growth of the solar industry. But while large solar companies have the potential to overcome challenges caused by supply chain disruptions, the fundamentally weak stocks of Sunrun (NASDAQ :), Sunnova Energy (NOVA), Sunworks (NASDAQ :), and Solar Integrated Roofing (SIRC) could witness a short term downtrend. We therefore believe that it is better to avoid these actions now. Read on. Government efforts around the world to achieve carbon neutrality, rising oil prices, and the recent passage of a $ 1.75 trillion infrastructure bill, which provides funding and credits for This high tax for the renewable energy and electric vehicle industries bodes well for the solar industry. The global solar energy market is expected to grow at a CAGR of 20% to reach $ 200 billion by 2026.

While continued supply chain bottlenecks may affect industry output slightly in the short term, increased government support is expected to help the industry grow significantly in the long term. Investor interest in solar stocks is evident in the 5.7% returns of the Invesco Solar Portfolio (TAN) ETF over the past month, against the 3.3% gains of the SPDR S&P 500 ETF. Trust (SPY).

However, solar stocks Sunrun Inc . (CLASSES), Sunnova Energy International Inc . (NYSE :), Sunworks, Inc. (SUNW) and Solar Integrated Roofing Corporation (SIRC) are expected to remain under pressure in the near term due to weak fundamentals and overvaluations. So, we think it is better to avoid them now.

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