In light of investors celebrating Earth Day, five solar stocks with high GF scores include SolarEdge Technologies Inc. (SEDG, Financial), First Solar Inc. (FSLR, Financial), Canadian Solar Inc. (CSIQ, Financial), Enphase Energy Inc. (ENPH, Financial) and Sunrun Inc. (CLASSES, Financial).
Every year on April 22, investors celebrate Earth Day as a reminder to help protect the environment and live a sustainable life.
The National Geographic Society has listed in an encyclopedia article that renewable energy sources include biomass energy, hydroelectricity, geothermal energy, wind energy, and solar energy.
Thus, investors can find opportunities in solar stocks with a high GF score. GuruFocus’ proprietary rating system considers five key aspects of a company’s fundamental criteria: financial strength, profitability, growth, valuation and momentum. Each rank is scored between 1 and 10, with 10 being the highest rank.
The overall GF score ranges from 0 to 100, with 100 being the highest rank. GuruFocus backtesting from 2006 to 2021 found that stocks with high GF scores generally have higher outperformance potential than stocks with low GF scores.
SolarEdge Technologies Shares (SEDG, Financial) was trading around $254.85, showing the stock is fairly valued based on Friday’s GF price-to-value ratio of 1.06.
The Israeli solar company has a GF score of 90 out of 100, with a 9 out of 10 ranking for growth and momentum and a ranking between 7 and 8 out of 10 for financial strength and profitability, despite a GF Value ranking of just 5 out of 10.
SolarEdge Technologies has a profitability ranking of 8, thanks to a three-year revenue growth rate that outperforms more than 80% of its global competitors despite profit margins and returns exceeding just over half of its global peers .
First Solar Shares (FSLR, Financial) was trading around $73.46, showing that the stock is fairly valued based on Friday’s GF price-to-value ratio of around 1.
The Tempe, Arizona-based company has a GF score of 79 out of 100, driven by a financial strength ranking of 9 out of 10 and a ranking between 6 and 7 out of 10 for GF value, profitability and momentum, despite a rank growth of only 4 out of 10.
Gurus with stakes in First Solar include
Jim Simons (Businesses, Portfolio)’ Renaissance Technologies and
Ray Dalio (Businesses, Portfolio) of Bridgewater Associates.
Shares of Canadian Solar (CSIQ, Financial) was trading around $30.56, showing the stock is slightly undervalued based on Friday’s GF price-to-value ratio of 0.80.
The Ontario-based company has a GF score of 77 out of 100. Although the company’s GF value ranks 10 out of 10, Candian Solar has a ranking between 5 and 6 for financial strength, profitability, growth and momentum.
Gurus holding stakes in Canadian Solar include
Jeremy Grantham (Businesses, Portfolio) GMOs and
steven cohen (Trades, Portfolio)’s Point72 Asset Management.
Enphase Energy Stocks (ENPH, Financial) was trading around $152.69, showing the stock is slightly overvalued based on Friday’s GF price-to-value ratio of 1.14.
The Fremont, Calif.-based company has a GF score of 74 out of 100, driven by a ranking between 6 and 8 out of 10 for momentum, growth and financial strength despite profitability and the GF Value ranking between 3 and 4 out of 10.
Sunrun Shares (CLASSES, Financial) traded around $20.16, showing the stock is significantly undervalued based on Friday’s GF price-to-value ratio of 0.58.
The San Francisco-based company has a GF score of 71 out of 100 on the back of a GF Value ranking of 8 out of 10 and a growth ranking of 6 out of 10 despite financial strength, profitability and momentum ranking between 3 and 5 out of 10.
Gurus with stakes in Sunrun include
Chase Coleman (Businesses, Portfolio) Tiger Global Management and
Philippe Laffont (Businesses, Portfolio) Coatue Asset Management.