3 Top Solar Power Stocks To Check On The Stock Market Today
With markets fearing a recession, investors may be keen to look for long-term stocks in the stock market today. For one thing, solar energy stocks could be worth considering as the world continues to shift to renewable energy sources. In some context, the Bureau of Labor Statistics consumer price index (CPI) for May is up 8.6% year-over-year, above estimates of 8.3% . It would also be the biggest jump since 1981. With economic pressures mounting and the Federal Reserve set to hold its final policy meeting this week, things are strained to say the least. As such, it would make sense for investors to consider longer-term trends when considering their next moves.
Additionally, the industry as a whole also receives support from President Joe Biden and his administration. Just last week, the president invoked the Defense Production Act to bolster domestic production of solar panels and related components. In addition, there will also be a 24-month tariff exemption on imports of solar panels from several countries. According to the White House press release, all of this will serve to “develop rapidly” national sustainable development efforts. Ideally, this would mark another tailwind for the solar energy industry.
For example, we could look SolarEdge Technologies (NASDAQ:SEDG). Last month, SolarEdge launched its Sella 2, a 2 gigawatt battery cell manufacturing facility in South Korea. This facility helps the company have its own supply of lithium-ion batteries and infrastructure. In addition, sunrun (NASDAQ: RUN) recently announced the completion of new solar installations for 70 affordable rental units in San Jose, California. On that note, here are three more solar power stocks to watch on the stock market now.
Solar Power Stocks to Buy [Or Sell] This week
You’re here is an automotive and clean energy company based in Austin, Texas. The company has revolutionized the electric vehicle space, showing that electric vehicles don’t compromise performance for durability. Tesla not only manufactures all-electric automobiles, but also highly scalable sustainable power generation and battery storage systems. Through its subsidiary, Tesla Energy, the company is a major installer of photovoltaic systems in the United States.
Today, RBC Capital Markets just upgraded Tesla to an outperform rating from a market performance rating. This stems from a positive view of the long-term positioning of the electric vehicle manufacturer. Analyst Joseph Spak and his team say that as EV companies enter their third phase in the mid-to-late decade, the ability to deliver EVs is heavily dependent on their supply chain. Tesla in particular has had a sustainable advantage in its supply chain and logistics.
On Friday, Tesla had just filed its annual proxy statement with the SEC and revealed its plans for a three-for-one stock split. In the filing, the company wrote of the proposed stock split, “Our success depends on our ability to attract and retain excellent talent,and that giving every employee an option to receive stock helped Tesla do just that. The stock split allows small investors to feel they can afford the stock while allowing their employees more flexibility in managing their equity. With this knowledge, should you consider adding TSLA stocks to your watchlist?
Daqo New Energy Corp.
Daqo New Energy is a leading manufacturer of high purity polysilicon for the global solar PV industry. Today, it is one of the world’s cheapest producers of high-purity polysilicon, which is a key feedstock in the solar PV supply chain. The company is a major player in the polysilicon production segment, with a capacity of 70,000 metric tons. This is due to its highly efficient and technologically advanced manufacturing facility in Xinjiang, China.
Last month, Daqo received approval from the China Securities Regulatory Commission (CSRC) for its planned private offering in the Chinese A-share market. They intend to raise up to 1.63 billion dollars through this private offer. With the offering, approximately $1.19 billion will be used for its 100,000 metric ton polysilicon expansion project in Baotou City, China. The remainder of the proceeds will be used for working capital purposes.
Not to mention, the company also reported a strong fiscal first quarter on April 21, 2022. Revenue for the quarter was $1,280.3 million, compared to $256.1 million a year ago. . Its gross profit is $813.6 million, compared to $118.9 million a year ago. Impressively, net income also increased to $535.8 million for the quarter from $83.2 million a year ago. Additionally, gross margin increased to 63.5% from 46.4% in the first quarter of 2021. The company also said it was the best first quarter in its history as it tripled sales volume of polysilicon. Considering all of this, are DQ stocks worth investing in right now?
Enphase Energy Inc.
Last but not least, we have Enphase Energy. Together with its subsidiaries, it designs, develops, manufactures and sells home energy solutions for the solar photovoltaic (PV) industry in the United States and internationally. With the Enphase Energy system, people can make, use, save, sell and own their electricity. All of these are manageable through Enphase’s all-in-one software platform. With this breakthrough, people can be compensated for the clean energy they generate and distribute to their communities.
Also, summer heat waves continue to hit the country now. So much so that large parts of the Midwest continue to face blackouts. According to the New Mexico attorney general, they anticipate and prepare for “worst-case scenarios.” Similarly, officials in North Dakota, Arkansas and Arizona also provide similar warnings. For this reason, demand for Enphase’s offerings could, in theory, continue to grow domestically. That’s where the company’s microinverters come in. Essentially, it’s used to power solar power generation systems. Not to mention that it can also activate a microgrid using only sunlight, providing backup power even without a battery.
At the same time, Enphase is also working hard to expand its operations. Earlier today, the company noted that its battery storage portfolio in Puerto Rico continues to grow steadily. Brad Spernak, technical director of Pro Solar, an Enphase Platinum level installer, talks about this in more detail. He says, “Homeowners in Puerto Rico are increasingly motivated to switch to solar and battery storage to manage all-too-frequent grid outages and rising electricity prices.” As Enphase continues to gain momentum across the board, would ENPH stock be on your watchlist this week?