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Track These 4 Promising Solar Stocks for Sun-Kissed Returns
As the world increasingly shifts toward renewable energy sources, solar power has emerged as a leading contender. The soaring demand for solar energy presents a golden opportunity for investors looking to capitalize on this growing market. So, if you want to bask in the glow of sunlit returns, consider keeping these solar stocks on your watchlist.
Solar energy industry participants include manufacturers of solar panels, inverters, batteries, and trackers; developers and operators of solar power plants; and providers of solar installation and maintenance services. In this investment article, we will explore four promising solar stocks that deserve a spot on your watchlist, namely— Enphase Energy, First Solar, Inc., SunPower Corp and Sunnova Energy International. Before we delve into each of the stocks, let’s take a quick look on the shining prospects of the U.S. solar market.
Illuminating Potential of the Market
The U.S. solar market is on an ascendant trajectory, fueled by robust first-quarter 2023 figures and heightened demand. The latest US Solar Market Insight Q2 2023 report published by the Solar Energy Industries Association (SEIA) predicts the space to triple in size by 2028, reaching an astounding 378 gigawatts (GW) of total installed solar capacity. This forecast signals immense investment potential, making it an opportune time for investors to consider entering the solar sector.
The impressive projection is largely the result of the solar industry's remarkable run in the first quarter. During this period, the US solar industry installed a record-breaking 6.1 GW of solar capacity, thanks to easing supply chain constraints and expedited solar projects that were previously delayed.
Another catalyst of this growth is the Biden administration's Inflation Reduction Act, which has triggered a flurry of new manufacturing announcements. U.S. module capacity is projected to climb from less than 9 GW currently to more than 60 GW by 2026. In fact, by the end of Q1 2023, around 16 GW of solar module factories were already under construction.
Despite initial reluctance among consumers, the residential segment saw the installation of 1.6 GW of solar capacity in the first quarter of 2023, marking a 30% year-on-year increase. It's predicted that this segment will add another 36 GW of solar power over the next five years, growing at an average annual rate of 6%.
The commercial market followed suit with a record first quarter, installing 391 MW and projecting 12% growth for 2023. Florida led the pack as the top solar state in the January-March period, boasting 1.46 GW of utility-scale solar installations. This marks a more than 70% increase over California, the second top state.
The utility-scale market enjoyed a buoyant first quarter too, reporting a record 3.8 GW of installed solar capacity. Easing documentation requirements under the Uyghur Forced Labor Prevention Act allowed more importers to supply solar equipment to project sites.
However, the community solar segment suffered a setback, installing 212 MW, a 13% decrease from the first quarter of 2022. This decrease was mainly due to ongoing interconnection challenges.
Despite some hurdles, the outlook for the U.S. solar market remains incredibly bright. The stage is set for investors looking to capitalize on the sector's potential, as the industry continues to harness the power of the sun to revolutionize the energy landscape.
4 Stocks to Watch for a Bright Tomorrow
Enphase: Based in California, Enphase is a global energy technology company that specializes in the design and manufacture of advanced solar microinverter systems. In the first quarter of 2023, it achieved record sales of microinverters and battery revenues.
With a focus on expanding its market presence, Enphase continually introduces microinverter versions to capitalize on the growing solar market and improve customer reliability. The company’s commitment to innovation helps to meet the rising demand for solar energy solutions. Its fully integrated solar-plus-storage solutions reinforce its strong position in the market. Enphase's solid liquidity profile further instills investor confidence, enhancing its competitive edge.
The Zacks Consensus Estimate for 2023 and 2024 sales implies a year-over-year increase of 33% and 24.7%, respectively. The consensus mark for 2023 and 2024 EPS suggests year-over-year growth of 21% and 35%, respectively. Encouragingly, the company surpassed earnings estimates in each of the trailing four quarters, the average surprise being 19.5%. ENPH currently carries a Zacks Rank #3 (Hold) and has a VGM Score of A.
First Solar: Based in Tempe, AZ, First Solar is a leading global provider of comprehensive PV solar energy solutions, and specializes in designing, manufacturing and selling solar electric power modules using a proprietary thin-film semiconductor technology.
With the Series 6 module enjoying solid demand worldwide, First Solar is ramping up the production of this module, which is set to drive revenues. The company's project pipeline and long-term power purchase agreements with utilities or commercial customers provide revenue visibility. FSLR anticipates that its expansion strategy should enable it to boost its manufacturing capacity by approximately 11 GW by 2025. The acquisition of Evolar AB has further strengthened First Solar’s global leadership in thin film photovoltaics.
The consensus estimate for 2023 and 2024 sales implies a year-over-year increase of 32% for both years. The consensus mark for 2023 and 2024 EPS suggests year-over-year growth of 1,888% and 77%, respectively. FSLR currently carries a Zacks Rank #3.
SunPower: Based in California, SunPower is involved in the development, installation, and maintenance of solar power solutions for residential, commercial, and utility-scale customers. Itis one of the most forward-integrated solar companies, having more than a decade of experience in designing, manufacturing and supplying large-scale solar systems.
Strong momentum in residential and commercial markets tends to boost its growth trajectory. SunPower continually strives to evolve and introduce innovative products. It has begun engineering and design work on the second version of its SunVault energy storage system. The company is targeting the launch of V2 in the second half of 2024, which is set to expand its customer base and aid top-line growth.
The Zacks Consensus Estimate for 2023 and 2024 sales implies a year-over-year increase of 20% and 15%, respectively. The consensus mark for 2024 EPS suggests year-over-year growth of 105%. SPWR currently carries a Zacks Rank #3.
Sunnova: Based in Houston, Sunnova is one of the leading providers of storage energy solutions. The company boasts an expanding customer base driven by its innovative solar and energy storage offerings. A comprehensive service model, including long-term contracts, provides stable recurring revenue streams.
In the last reported quarter, Sunnova’s revenues were nearly $162 million, representing a significant growth rate of more than 145% compared with the same period last year. Encouragingly, the company has also revised its guidance for client additions, anticipating the addition of 125,000 to 135,000 customers this year. This upward adjustment from the previous estimated range of 115,000 to 125,000 demonstrates Sunnova's confidence in its ability to capture a larger market share and capitalize on the expanding residential solar market.
The Zacks Consensus Estimate for 2023 and 2024 sales implies a year-over-year increase of 47% and 24%, respectively. The consensus mark for 2023 and 2024 EPS suggests year-over-year growth of 24% and 12%, respectively. NOVA currently carries a Zacks Rank #3.
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Industry Outlook Highlights Enphase Energy, First Solar, SunPower and Sunnova Energy International
For Immediate Release
Chicago, IL – June 9, 2023 – Today, Zacks Equity Research discusses Enphase Energy (ENPH - Free Report) , First Solar, Inc. (FSLR - Free Report) , SunPower Corp (SPWR - Free Report) and Sunnova Energy International (NOVA - Free Report) .
Industry: Solar
Link to article: https://www.zacks.com/stock/news/2105822/track-these-4-promising-solar-stocks-for-sun-kissed-returns?art_rec=home-home-investment_ideas_stocks-ID06-txt-2105822
Track These 4 Promising Solar Stocks for Sun-Kissed Returns
As the world increasingly shifts toward renewable energy sources, solar power has emerged as a leading contender. The soaring demand for solar energy presents a golden opportunity for investors looking to capitalize on this growing market. So, if you want to bask in the glow of sunlit returns, consider keeping these solar stocks on your watchlist.
Solar energy industry participants include manufacturers of solar panels, inverters, batteries, and trackers; developers and operators of solar power plants; and providers of solar installation and maintenance services. In this investment article, we will explore four promising solar stocks that deserve a spot on your watchlist, namely— Enphase Energy, First Solar, Inc., SunPower Corp and Sunnova Energy International. Before we delve into each of the stocks, let’s take a quick look on the shining prospects of the U.S. solar market.
Illuminating Potential of the Market
The U.S. solar market is on an ascendant trajectory, fueled by robust first-quarter 2023 figures and heightened demand. The latest US Solar Market Insight Q2 2023 report published by the Solar Energy Industries Association (SEIA) predicts the space to triple in size by 2028, reaching an astounding 378 gigawatts (GW) of total installed solar capacity. This forecast signals immense investment potential, making it an opportune time for investors to consider entering the solar sector.
The impressive projection is largely the result of the solar industry's remarkable run in the first quarter. During this period, the US solar industry installed a record-breaking 6.1 GW of solar capacity, thanks to easing supply chain constraints and expedited solar projects that were previously delayed.
Another catalyst of this growth is the Biden administration's Inflation Reduction Act, which has triggered a flurry of new manufacturing announcements. U.S. module capacity is projected to climb from less than 9 GW currently to more than 60 GW by 2026. In fact, by the end of Q1 2023, around 16 GW of solar module factories were already under construction.
Despite initial reluctance among consumers, the residential segment saw the installation of 1.6 GW of solar capacity in the first quarter of 2023, marking a 30% year-on-year increase. It's predicted that this segment will add another 36 GW of solar power over the next five years, growing at an average annual rate of 6%.
The commercial market followed suit with a record first quarter, installing 391 MW and projecting 12% growth for 2023. Florida led the pack as the top solar state in the January-March period, boasting 1.46 GW of utility-scale solar installations. This marks a more than 70% increase over California, the second top state.
The utility-scale market enjoyed a buoyant first quarter too, reporting a record 3.8 GW of installed solar capacity. Easing documentation requirements under the Uyghur Forced Labor Prevention Act allowed more importers to supply solar equipment to project sites.
However, the community solar segment suffered a setback, installing 212 MW, a 13% decrease from the first quarter of 2022. This decrease was mainly due to ongoing interconnection challenges.
Despite some hurdles, the outlook for the U.S. solar market remains incredibly bright. The stage is set for investors looking to capitalize on the sector's potential, as the industry continues to harness the power of the sun to revolutionize the energy landscape.
4 Stocks to Watch for a Bright Tomorrow
Enphase: Based in California, Enphase is a global energy technology company that specializes in the design and manufacture of advanced solar microinverter systems. In the first quarter of 2023, it achieved record sales of microinverters and battery revenues.
With a focus on expanding its market presence, Enphase continually introduces microinverter versions to capitalize on the growing solar market and improve customer reliability. The company’s commitment to innovation helps to meet the rising demand for solar energy solutions. Its fully integrated solar-plus-storage solutions reinforce its strong position in the market. Enphase's solid liquidity profile further instills investor confidence, enhancing its competitive edge.
The Zacks Consensus Estimate for 2023 and 2024 sales implies a year-over-year increase of 33% and 24.7%, respectively. The consensus mark for 2023 and 2024 EPS suggests year-over-year growth of 21% and 35%, respectively. Encouragingly, the company surpassed earnings estimates in each of the trailing four quarters, the average surprise being 19.5%. ENPH currently carries a Zacks Rank #3 (Hold) and has a VGM Score of A.
First Solar: Based in Tempe, AZ, First Solar is a leading global provider of comprehensive PV solar energy solutions, and specializes in designing, manufacturing and selling solar electric power modules using a proprietary thin-film semiconductor technology.
With the Series 6 module enjoying solid demand worldwide, First Solar is ramping up the production of this module, which is set to drive revenues. The company's project pipeline and long-term power purchase agreements with utilities or commercial customers provide revenue visibility. FSLR anticipates that its expansion strategy should enable it to boost its manufacturing capacity by approximately 11 GW by 2025. The acquisition of Evolar AB has further strengthened First Solar’s global leadership in thin film photovoltaics.
The consensus estimate for 2023 and 2024 sales implies a year-over-year increase of 32% for both years. The consensus mark for 2023 and 2024 EPS suggests year-over-year growth of 1,888% and 77%, respectively. FSLR currently carries a Zacks Rank #3.
SunPower: Based in California, SunPower is involved in the development, installation, and maintenance of solar power solutions for residential, commercial, and utility-scale customers. Itis one of the most forward-integrated solar companies, having more than a decade of experience in designing, manufacturing and supplying large-scale solar systems.
Strong momentum in residential and commercial markets tends to boost its growth trajectory. SunPower continually strives to evolve and introduce innovative products. It has begun engineering and design work on the second version of its SunVault energy storage system. The company is targeting the launch of V2 in the second half of 2024, which is set to expand its customer base and aid top-line growth.
The Zacks Consensus Estimate for 2023 and 2024 sales implies a year-over-year increase of 20% and 15%, respectively. The consensus mark for 2024 EPS suggests year-over-year growth of 105%. SPWR currently carries a Zacks Rank #3.
Sunnova: Based in Houston, Sunnova is one of the leading providers of storage energy solutions. The company boasts an expanding customer base driven by its innovative solar and energy storage offerings. A comprehensive service model, including long-term contracts, provides stable recurring revenue streams.
In the last reported quarter, Sunnova’s revenues were nearly $162 million, representing a significant growth rate of more than 145% compared with the same period last year. Encouragingly, the company has also revised its guidance for client additions, anticipating the addition of 125,000 to 135,000 customers this year. This upward adjustment from the previous estimated range of 115,000 to 125,000 demonstrates Sunnova's confidence in its ability to capture a larger market share and capitalize on the expanding residential solar market.
The Zacks Consensus Estimate for 2023 and 2024 sales implies a year-over-year increase of 47% and 24%, respectively. The consensus mark for 2023 and 2024 EPS suggests year-over-year growth of 24% and 12%, respectively. NOVA currently carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.