3 Top Solar Energy Stocks To Check Out In The Stock Market Today
While markets are fearful of a recession, investors could be keen to look for long-term plays in the
stock market
today. For one thing,
solar energy stocks
could be worth considering as the world continues to shift towards renewable energy sources. For 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%. This would also be the biggest jump since 1981. With economic pressures piling up, and the Federal Reserve set to host its latest policy meeting this week, things are tense, to say the least. As such, it would make sense that investors are considering longer-term trends when thinking of their next moves.
Additionally, the industry as a whole is also receiving support from President Joe Biden and his administration. Just last week, the President invoked the Defense Production Act to bolster the domestic production of solar panels and related components. Also, there will be a 24-month tariff exemption on imports of solar panels from several countries as well. According to the White House press release, all this will serve to “
rapidly expand
” sustainability efforts nationwide. Ideally, this would mark another tailwind for the solar energy industry.
For instance, we could look at
SolarEdge Technologies
(
NASDAQ: SEDG
). Just last month, SolarEdge launched its Sella 2, a 2-gigawatt battery cell manufacturing facility in South Korea. This facility aids the company in having its own supply of lithium-ion batteries and infrastructure. Moreover,
Sunrun
(
NASDAQ: RUN
) recently announced the completion of new solar installations for 70 affordable rental homes in San Jose, California. On that note, here are three more
solar energy stocks
to keep on watch in the stock market now.
Solar Energy Stocks To Buy [Or Sell] This Week
-
Tesla Inc.
(
NASDAQ: TSLA
) -
Daqo New Energy Corp.
(
NYSE: DQ
) -
Enphase Energy Inc.
(
NASDAQ: ENPH
)
Tesla Inc.
Tesla
is an automotive and clean energy company based in Austin, Texas. The company has been revolutionizing the EV space, showing that EVs do not compromise performance for sustainability. Tesla manufactures not only all-electric automobiles but also sustainable energy generation and battery storage systems that are highly scalable. Through its subsidiary, Tesla Energy, the company is a major installer of photovoltaic systems in the U.S.
Today, RBC Capital Markets has just upgraded Tesla to an Outperform rating from a Market Perform rating. This comes off a positive view of the EV maker’s long-term positioning. Analyst Joseph Spak and his team say that as EV companies enter their third phase in the mid-to-late part of the decade, being able to deliver EVs is highly dependent on their supply chain. Tesla especially has had a long-lasting 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 attracting and retaining excellent talent,
” and that offering every employee an option to receive equity, helped Tesla to do that. The stock split allows smaller investors to feel they can afford the stock while allowing their employees to have more flexibility in managing their equity. With this piece of knowledge, should you consider adding TSLA stock 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 lowest-cost producers of high-purity polysilicon, which is a key basic material in the solar PV supply chain. The company is a main player in the polysilicon production segment, with a capacity of 70,000 metric tonnes. 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 China’s A-Share Market. They intend to raise up to $1.63 billion from this private offering. With the offering, approximately $1.19 billion will be used for its 100,000 metric tons polysilicon expansion project in Baotou City, China. The rest of the proceeds will be used for its working capital purposes.
Not to mention, the company also reported a strong first fiscal quarter on April 21, 2022. Revenue for the quarter is $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. Besides, gross margin increased to 63.5% from 46.4% in the first quarter of 2021. The company also said that this is the best first quarter in its history as it tripled polysilicon sales volume. Considering all of this, is DQ stock worth investing in right now?
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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 power. All of which are manageable via Enphase’s all-in-one software platform. With this advancement, people can be compensated for the clean energy they generate and distribute to their communities.
Also, summer heat waves continue to hit the nation now. So much so that major parts of the Midwest continue to face rolling blackouts. According to New Mexico’s attorney general, they are anticipating and preparing for “worst-case scenarios.” Likewise, officials in North Dakota, Arkansas, and Arizona are also providing similar warnings. Because of this, demand for Enphase’s offerings could, in theory, continue to grow domestically. This would be where the company’s microinverters come into play. In essence, it serves to power solar energy-producing systems. Not to mention, it can also enable a microgrid using only sunlight, providing backup power even without a battery.
At the same time, Enphase remains hard at work expanding its operations as well. Earlier today, the company noted that its battery storage portfolio in Puerto Rico continues to grow steadily. Speaking on this in further detail is Brad Spernak, the CTO of Pro Solar, an Enphase Platinum level installer. He says,
“Homeowners in Puerto Rico are increasingly motivated to switch to solar and battery storage in order to manage the all too frequent grid outages and the increasingly high electricity prices.”
As Enphase continues to gain momentum across the board, would ENPH stock be on your watchlist this week?
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