Solar stocks rally on Russian invasion as sector seen as long-term beneficiary (NASDAQ:ENPH)

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Enphase Energy (ENPH) +3.1%) and SolarEdge Technologies (SEDG +0.9%), two of Thursday’s top gainers on the S&P 500, extend earnings as solar and wind power games seem to have won a bid following Russia’s invasion of Ukraine.

According to this line of thinking, most countries in the European Union have started to switch to renewable energy, but they now have more reason to move away from natural gas after the actions of Russia, writes Avi Salzman on Barrons.

“Given the geopolitical events unfolding today that have driven energy commodity prices up significantly, as well as increased investor belief that energy prices could remain high, he has renewed interest for clean energy stocks like Sunrun,” said BMO Capital analyst Ameet Thakkar. Barronsadding that “solar’s potential to be more price competitive with utility electricity rates is strengthened in an environment of high energy commodity prices.”

Thakkar also said the rally was part of a broader rise in stocks that are benefiting from lower interest rates, saying strategists are starting to expect fewer rate hikes from the Federal Reserve in light of the Russian invasion.

Among other solar names: RUN -0.1% after jumping 22% on Thursday, NOVA +0.5% after a 20% peak, SPWR -1.5% after Thursday’s 14% gain, and the CSIQ +1.1% after a 9% bump; ETF-TAN

Canadian Solar also announced PPAs with Brazilian steelmaker Usinas committing 50% of total power generation from a planned solar power project in Brazil.

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