Clean energy companies have soared over the past few months, and their run may just be getting started. The bullish move came following climate change legislation – part of the Inflation Reduction Act – that Biden signed into law back in August. The Democrats have boasted that the bill represents the largest investment in clean energy and climate provisions in history, a sweeping win for the American people.
The law includes approximately $370 billion that will direct spending, tax credits and loans to bolster technology such as solar panels. It includes incentives for companies to produce more renewable energy for households in order to transform their energy use and consumption. And the market has responded in kind – with many solar companies witnessing massive returns in a very short period of time.
The Zacks Solar industry is ranked in the top 28% out of approximately 250 industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months. Digging a bit deeper, we can see below that the Solar industry has returned nearly 10% this year, all while the general market hovers in a deep bear market:
In addition, the industry is displaying favorable characteristics as illustrated below:
Let’s take a closer look at one stock within this industry that is flashing signs of continued outperformance.
First Solar (FSLR - Free Report)
First Solar provides photovoltaic (PV) solar energy solutions globally. The company designs, manufactures, and sells cadmium telluride solar modules that convert sunlight into electricity. FSLR serves developers and operators of systems, utilities, independent power producers, and commercial and industrial companies. First Solar was founded in 1999 and is based in Tempe, AZ.
FSLR has built some momentum on the earnings front, having either met or exceeded estimates in three of the past four quarters. The PV provider most recently posted Q2 EPS results back in July of $0.52/share, a 73.33% surprise over the $0.3 estimate. FSLR has delivered a trailing four-quarter average earnings surprise of 13.74%. The stock has advanced nearly 118% since bottoming out in May and is showing no signs of a reversal.
As we peel back the earnings picture, analysts have raised 2023 estimates by 14.65% in the past 60 days. The Zacks Consensus Estimate now stands at $1.80/share, reflecting an astounding 2,346.88% growth rate versus 2022. It’s clear the growth outlook is favorable, and the stock has begun to reflect this with more upside likely on the way.
Make sure to keep an eye on FSLR and the rest of the solar industry.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Clean energy companies have soared over the past few months, and their run may just be getting started. The bullish move came following climate change legislation – part of the Inflation Reduction Act – that Biden signed into law back in August. The Democrats have boasted that the bill represents the largest investment in clean energy and climate provisions in history, a sweeping win for the American people.
The law includes approximately $370 billion that will direct spending, tax credits and loans to bolster technology such as solar panels. It includes incentives for companies to produce more renewable energy for households in order to transform their energy use and consumption. And the market has responded in kind – with many solar companies witnessing massive returns in a very short period of time.
The Zacks Solar industry is ranked in the top 28% out of approximately 250 industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months. Digging a bit deeper, we can see below that the Solar industry has returned nearly 10% this year, all while the general market hovers in a deep bear market:
In addition, the industry is displaying favorable characteristics as illustrated below:
Let’s take a closer look at one stock within this industry that is flashing signs of continued outperformance.
First Solar (FSLR - Free Report)
First Solar provides photovoltaic (PV) solar energy solutions globally. The company designs, manufactures, and sells cadmium telluride solar modules that convert sunlight into electricity. FSLR serves developers and operators of systems, utilities, independent power producers, and commercial and industrial companies. First Solar was founded in 1999 and is based in Tempe, AZ.
FSLR has built some momentum on the earnings front, having either met or exceeded estimates in three of the past four quarters. The PV provider most recently posted Q2 EPS results back in July of $0.52/share, a 73.33% surprise over the $0.3 estimate. FSLR has delivered a trailing four-quarter average earnings surprise of 13.74%. The stock has advanced nearly 118% since bottoming out in May and is showing no signs of a reversal.
As we peel back the earnings picture, analysts have raised 2023 estimates by 14.65% in the past 60 days. The Zacks Consensus Estimate now stands at $1.80/share, reflecting an astounding 2,346.88% growth rate versus 2022. It’s clear the growth outlook is favorable, and the stock has begun to reflect this with more upside likely on the way.
Make sure to keep an eye on FSLR and the rest of the solar industry.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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