Solar stocks have witnessed a remarkable resurgence after the recent presidential debate, where the focus on alternative energy sources was highlighted. Democratic candidate Kamala Harris’ emphasis on expanding such assets has injected renewed vigor into the solar industry.
FSLR Stock: A Beacon in the Industry
First Solar has emerged as a front-runner in the recent solar stock surge, with its market value climbing by nearly 15% since the debate. As the leading solar module manufacturer, the company has experienced robust growth, witnessing a 35% increase in its stock value this year.
Despite this remarkable run, First Solar’s stock maintains a Zacks Rank #3 (Hold). However, with projections indicating significant double-digit growth in both revenue and profit by fiscal 2024 and FY25, the company presents itself as a compelling long-term investment opportunity.
Image Source: Zacks Investment Research
Sunrun (RUN) Shows Strength with Zacks Rank #1
As a provider of residential solar energy systems, Sunrun stands out as a star performer in the Zacks Solar Industry with a high Zacks Rank of #1 (Strong Buy). Favorable earnings estimate revisions for FY24 and FY25 signal the company’s path towards profitability.
Image Source: Zacks Investment Research
Array Technologies (ARRY): Potential for Growth
Specializing in ground mounting systems for solar projects, Array Technologies is positioned for a significant rebound. Despite a recent decline from its peak, the stock trades at an attractive price point, making it an intriguing prospect for investors.
Image Source: Zacks Investment Research
The Solar Industry’s Performance Overview
Despite the recent rally, the Zacks Solar market has faced challenges this year, trailing behind the S&P 500 and Nasdaq gains. With a year-to-date decline of 16%, the solar sector continues to underperform broader market indexes.
Image Source: Zacks Investment Research
Final Considerations
While the recent surge in solar stocks is enticing, investors should proceed with caution. Companies like First Solar, Sunrun, and Array Technologies exhibit promise, but inherent risks persist in the market. External factors such as rate cuts to alleviate inflationary pressures remain crucial for sustained growth in the sector.