Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

On May 9, 2013, the shares of SunPower Corporation (SPWR - Analyst Report) climbed to its 52-week high of $16.92 primarily driven by robust performance in first-quarter 2013. On a year-over-year basis, the company’s top and bottom line increased significantly due to high efficiency solar panels and strong performance from both rooftop and ground mount teams.

Globally, utilization of renewable energy is rising primarily due to its clean nature and a growing awareness among the masses regarding its benefits. These influence utility providers to shift their mode of power generation to solar, wind and water.

SunPower Corporation is continuously receiving orders from domestic and international clients for solar modules and other allied services. The company has already begun construction of the 579-megawatt Antelope Valley Solar Projects for MidAmerican Solar. SunPower Corporation has almost completed the construction of the California Valley Solar Ranch project, owned by NRG Energy, Inc. (NRG - Analyst Report).

It is evident from SunPower Corporation’s activities that it is currently in an expansion mode. The company manufactures its solar cells and solar panels at its factories in the Philippines, a low-cost production region, and is building another facility in Mexico. This gives the company a distinctive cost advantage over its U.S.-based manufacturing peers. These initiatives will enable SunPower Corporation to improve its future margin.

We believe SunPower Corporation’s strong project backlog, continued growth in residential lease and global focus on improving its cost structure, will enable it to achieve its targets.

However, we are apprehensive about the rising competition, glut of solar panels in the market and lower average selling prices.

SunPower Corporation currently has a Zacks Rank #3 (Hold). Stocks worth considering in the alternative energy space are ReneSola Ltd. (SOL - Analyst Report) and STR Holdings, Inc. (STRI - Snapshot Report), both with a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%