U.S. Solar stocks have been out of the spotlight in 2018, courtesy of President Trump’s policies to revive the coal industry. For instance, at the onset of 2018, Trump imposed a 30% tariff on the import of solar panels that dealt a major blow to solar stocks.
However, not all is lost for the U.S. solar space. Per the latest Solar Market Insight Report by Solar Energy Industries Association (SEIA), since fourth-quarter 2017, residential solar installations have not deviated more than 1% on a quarter-over-quarter basis, demonstrating the steadiness of the sector.
Moreover, despite witnessing the lowest quarterly installation volume since 2015, utility solar photovoltaic (PV) accounted for the largest share of U.S. solar capacity installed in the third quarter of 2018. Further, procurement of U.S. utility solar exploded in 2018, with a total of 11.2 GWdc of projects announced over that time frame. In particular, declining costs of solar panels and modules along with grid developments have made the U.S. solar industry an attractive investment space for big corporate houses, apart from utility providers.
What’s Does 2019 Hold for the Solar Market?
The solar market is expected to witness accelerated deployment in 2019 driven by utility-scale projects. Wood Mackenzie has lifted the utility solar forecast for 2019 to 7.2 GWdc from 6.9 GWdc. For the residential PV space, a stellar comeback is expected next year.
Factors like the declining costs of solar installations as well as increased adopted of solar power by nations like India and Japan are enhancing opportunities for U.S. solar stocks. Although the import tariff may impede the initial rally of U.S. solar stocks, there’s no denying that renewables are the ultimate future and with America being one of the top five solar installers worldwide, prospects remain bright for its solar players.
In view of this, we have picked three players from the Zacks Solar Industry with a Zacks Rank of #1 (Strong Buy) or 2 (Buy) for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.
Azure Power Global (AZRE - Free Report) is an independent power producer and operator of utility and commercial scale solar PV power plants. The company, sporting a Zacks Rank #1, has an expected earnings growth rate of 83.08% for fiscal 2020.
Canadian Solar (CSIQ - Free Report) is a manufacturer of solar PV modules and provides turn-key solar energy solutions. The company, with a Zacks Rank #1, has an expected earnings growth rate of 10.62% for the next year.
Real Goods Solar (RGSE - Free Report) is a provider of solar power systems and residential solar power. The company, with a Zacks Rank #2, has an expected earnings growth rate of 369.81% for the next year.
In addition to the stocks discussed above, would you like to know about our 10 top tickers to buy and hold for the entirety of 2019?
These 10 are painstakingly handpicked from over 4,000 companies covered by the Zacks Rank. They are our primary picks poised to outperform in the year. Be among the first to see the new Zacks Top 10 Stocks >>