Energy
Solar Stock Momentum Expected to Stay Positive: 3 Stocks to Buy Right Now
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One of the sneaky tricks that politicians and lawmakers pull when crafting legislation is sticking in other items, some of which are pet projects for constituents, into large pieces of legislation. One of those items was in the new broader tax bill that passed late last year. Tax credits for wind and solar clean energy were extended another five years, an item that is big for some of the top companies doing business here. Combine that tasty tidbit, with the fact that there has been some solid momentum in the sector, and the opportunity could be good for aggressive investors.
A new research report from Deutsche Bank notes that while the industry and the top stocks are exhibiting generally solid fundamentals, the stocks have posted mixed results during the fourth-quarter reporting season. That aside, the analysts expect continued outperformance from the top stocks in the firm’s coverage universe. Four are rated Buy, but one is extremely speculative, so we focused on the three larger cap companies.
SunPower
This company is adding capacity at a breakneck pace and plays into the overall potential climate change theme. SunPower Corp. (NASDAQ: SPWR) and First Solar jointly formed a publicly traded yield company (yieldco) and many on Wall Street think that it is uniquely positioned as a solar-only yieldco with joint sponsorships by two of the largest solar developers in the world.
SunPower offers solar power products, including panels, balance of system components and inverters. It also designs, manufactures and sells high-performance rooftop and ground-mounted solar power systems, as well as utility-scale photovoltaic power plants. In addition, the company offers operations and maintenance services, including remote monitoring, preventative and corrective maintenance services, as well as rapid-response outage restoration and inverter repair services.
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