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?
Enphase Energy (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? ENPH Quick Quote ENPH - Free Report)
First Solar (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? FSLR Quick Quote FSLR - Free Report)
Canadian Solar (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? CSIQ Quick Quote CSIQ - Free Report)
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? REGI Quick Quote REGI - Free Report)
SolarEdge Technologies (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? SEDG Quick Quote SEDG - Free Report)
What else should you know about cheap alternative energy stocks?
Tune into this week’s podcast to find out.
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