Top 3 solar stocks to buy in April 2022


Across political lines in the United States and around the world, the movement toward renewable energy is becoming more mainstream. Growing concern over climate change, advocacy for green energy, government subsidies and stimulus packages offered to green energy projects are expected to support the solar energy sector.

Despite rising material prices globally, the trend for renewables seems assured; by 2026, global renewable electricity capacity is expected to increase by 60% from 2020 levels, as indicated by the International Energy Agency. This growth spurt will result in 4,800 GW of renewable energy or the total current global capacity of fossil fuel and nuclear power sources.

With such ambitious investment goals and assured growth, ESG investing should have a place in a savvy investor’s portfolio. The following three stocks have a lot of potential in this wave of renewable growth.

The best of the best

Earlier, Finbold reported on three promising solar stocks, with the performance of all three being outstanding. Now let’s watch an additional set of actions that look promising in light of increased investment in the sector.

1. Brookfield Renewable Partners (NYSE: BEP)

Businesses will need to invest significant capital to move away from fossil fuels and into renewables; likewise, growth stocks in the sector will need to follow suit. Brookfield seems unstoppable, gobbling up renewable projects whenever an opportunity presents itself. Recently, they acquired a US-based clean energy producer, Urban Grid, for $650 million.

With this new acquisition, Brookfield said its renewable capacity will rise to 31,000 MW in the United States alone. Such a strong portfolio of renewable energy projects creates a competitive divide around Brookfield that will be hard to beat. The stock currently stands at $40.98.

Source: finviz

Additionally, the stock is currently trading with significant volume, and chart analysis shows us that the momentum is above the 20-50-200 day simple moving averages (SMA). Bing’s power looks sustainable and the stock is in line with expectations benefiting from near-term strength.

The stock consensus is a ‘Moderate purchase‘ based on the opinions of 11 experts who made a prediction for the BEP stock over the past three months.

Source: TipRanks

2. First Solar (NASDAQ: FSLR)

Headquartered in Arizona, First Solar is an American company providing large-scale photovoltaic power plants, solar panels and support services.

Solar power makers will get a generous handout in light of the Biden administration’s $1.9 trillion Build Back Better legislation. Taxpayers will subsidize 50% of solar capacity generation of 6 GW per year.

Chart analysis shows us that the stock has broken above the 20-50-200 SMA and exited the lower channels. With potential long-term headwinds and higher trading volume, the stock looks set for a breakout.

Source: finviz

Analysts have a combined holding rating on the stock averaging $81.13. More bullish analysts see plenty of upside to $120.00, which may coincide with Biden’s plan.

Source: TipRanks

3. Enphase Energy Inc. (NASDAQ: ENPH)

On Tuesday, March 22, Enphase received bullish coverage from analysts at Wells Fargo (NYSE: WFC), indicating that the long-term tailwinds are favorable for the title, their technology and their investments being without equal.

The price target placed on the action by Wells Fargo analysts is $313 per share; currently the stock is trading in a channel with a recent breakout at $190 per share.

Source: finviz

Charts show movement above the 20-50-200 SMA with a breakout in progress. Analysts also agree with this stock, with 17 out of 21 analysts giving the stock a resounding buy.

Source: TipRanks

Headwinds for solar stocks

With such strong growth poised to lift all solar inventory and the global scramble to switch from fossil fuels to more renewable sources, the sector appears to be booming.

Not all solar stocks are created equal – some are simply backed by various grants, others have poor technology. Those above represent the creme de la creme that readers would be well advised to have on their watch list.

Warning: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.


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