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Zacks Value Trader Highlights: Enphase Energy, First Solar, Canadian Solar, Renewable Energy Group and SolarEdge Technologies
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For Immediate Release
Chicago, IL – June 12, 2020 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:
Alternative Energy Stocks: Values or Traps?
Welcome to Episode #193 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The oil and natural gas stocks have been one of the big movers of the recovery rally as they had seen a sharp sell-off.
But what about the alternative energy companies like solar and biofuels?
With many Millennials and GenZ investors rejecting any fossil fuel companies, you’d think they’d be in favor with investors.
A Value Stock or a Value Trap?
Are alternative energy stocks as cheap as oil and natural gas stocks in 2020?
A “value” stock is defined as having attractive fundamentals, such as a low price-to-earnings, price-to-book, price-to-sales or PEG ratio.
A value trap can also have similar fundamentals, and appear to be cheap, but with a value trap, the earnings estimates are usually being cut and earnings growth may be on the decline year-over-year.
Even value investors want rising earnings.
5 Alternative Energy Stocks: Values or Traps?
1. Enphase Energy (ENPH - Free Report) is one of the hottest alternative energy stocks on the Street in 2020. The supplier of solar microinventers is up 86% year-to-date. Analysts have cut their earnings estimates in the last 60 days, but is it still cheap enough to be a value?
2. First Solar (FSLR - Free Report) is one of the well-known solar names. Shares are still down 7.7% year-to-date, despite a rally off the March lows. Yet, earnings are expected to rise 83% year-over-year. Is it cheap enough to be a true value stock?
3. Canadian Solar (CSIQ - Free Report) is one of the rare companies where analysts are actually raising earnings estimates for the year. 3 analysts revised estimates higher over the last month. Additionally, earnings are expected to be up 22.8% year-over-year which means it’s not a trap. But is it cheap enough to be a value stock?
4. Renewable Energy Group is involved in leading the transformation of biofuel into improving the environment. Shares are up 20.3% year-to-date. But are earnings on their way up, or down?
5. SolarEdge Technologies (SEDG - Free Report) makes an intelligent inverter for the PV system. Estimates have been cut over the last 60 days. The shares are up 55% year-to-date, however. Are they too hot to handle for value investors?
What else should you know about cheap alternative energy stocks?
Tune into this week’s podcast to find out.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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/performancefor information about the performance numbers displayed in this press release.
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Zacks Value Trader Highlights: Enphase Energy, First Solar, Canadian Solar, Renewable Energy Group and SolarEdge Technologies
For Immediate Release
Chicago, IL – June 12, 2020 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:
Alternative Energy Stocks: Values or Traps?
Welcome to Episode #193 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The oil and natural gas stocks have been one of the big movers of the recovery rally as they had seen a sharp sell-off.
But what about the alternative energy companies like solar and biofuels?
With many Millennials and GenZ investors rejecting any fossil fuel companies, you’d think they’d be in favor with investors.
A Value Stock or a Value Trap?
Are alternative energy stocks as cheap as oil and natural gas stocks in 2020?
A “value” stock is defined as having attractive fundamentals, such as a low price-to-earnings, price-to-book, price-to-sales or PEG ratio.
A value trap can also have similar fundamentals, and appear to be cheap, but with a value trap, the earnings estimates are usually being cut and earnings growth may be on the decline year-over-year.
Even value investors want rising earnings.
5 Alternative Energy Stocks: Values or Traps?
1. Enphase Energy (ENPH - Free Report) is one of the hottest alternative energy stocks on the Street in 2020. The supplier of solar microinventers is up 86% year-to-date. Analysts have cut their earnings estimates in the last 60 days, but is it still cheap enough to be a value?
2. First Solar (FSLR - Free Report) is one of the well-known solar names. Shares are still down 7.7% year-to-date, despite a rally off the March lows. Yet, earnings are expected to rise 83% year-over-year. Is it cheap enough to be a true value stock?
3. Canadian Solar (CSIQ - Free Report) is one of the rare companies where analysts are actually raising earnings estimates for the year. 3 analysts revised estimates higher over the last month. Additionally, earnings are expected to be up 22.8% year-over-year which means it’s not a trap. But is it cheap enough to be a value stock?
4. Renewable Energy Group is involved in leading the transformation of biofuel into improving the environment. Shares are up 20.3% year-to-date. But are earnings on their way up, or down?
5. SolarEdge Technologies (SEDG - Free Report) makes an intelligent inverter for the PV system. Estimates have been cut over the last 60 days. The shares are up 55% year-to-date, however. Are they too hot to handle for value investors?
What else should you know about cheap alternative energy stocks?
Tune into this week’s podcast to find out.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/performance
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/performancefor information about the performance numbers displayed in this press release.