The solar industry is experiencing rapid growth and is currently one of the fastest-growing sectors in the stock market. This growth is expected to continue, thanks in part to the recently passed Inflation Reduction Act, which includes provisions for the clean energy sector. Some experts predict that solar installation rates may even triple over the next five years.
The Biden administration’s decision to suspend tariffs on solar panel components from certain countries will also help to fuel growth in the sector. By easing the supply chain for these essential components, solar companies will be able to more easily access the materials they need to produce and install solar panels. This move is likely to boost the industry’s overall competitiveness and help drive further adoption of solar technology.
The current administration has set a goal of having 45% of the United States’ energy supply come from solar by 2050. By making solar a more cost-effective option, it is hoped that more people will choose to switch to this clean energy source.
In this report, we are showcasing three solar stocks that are well positioned to benefit from this shift towards solar energy. These companies are leaders in the industry and are likely to see strong growth as solar becomes increasingly popular in the coming years.
- SunPower (NASDAQ:SPWR)
SunPower Corporation is a leading provider of solar, storage, and home energy solutions. The company’s stock has seen strong growth in 2022, with a year-to-date increase of 33%. SunPower reaches customers through a network of third-party dealers and resellers, as well as through its own in-house team of professionals.
The company has gained recognition due to its partnership with IKEA, which aims to increase the accessibility of solar power to consumers. This partnership will be tested in California before potentially being rolled out more widely. This collaboration has the potential to drive further growth for the company, as its stock has already seen a 26% increase in the current year.
Despite the consensus rating for SPWR stock being a Hold, the company has demonstrated strong revenue growth both in the short term and over the past year. In its most recent earnings report, SunPower also reported a healthy backlog of orders for its products, which suggests that its future growth goals are attainable. Currently, the stock is trading above its consensus estimate.
Concerning SunPower
SunPower Corporation is a company that provides a range of solar energy solutions, including solar panels and storage systems, to customers in the United States and Canada. It operates through several different business segments, including residential, light commercial, and commercial and industrial solutions. SunPower also offers a range of other energy-related products and services, including home energy solutions and components, and provides turn-key engineering, procurement, and construction services.
- NextEra Energy (NYSE:NEE)
NextEra Energy is a large energy company that is listed on the New York Stock Exchange under the ticker symbol NEE. It is not solely focused on solar energy, but rather provides a range of energy products and services across North America. Investors in NextEra Energy, or NEE stock, may be attracted to the company’s diversified approach to energy and its strong financial performance, as demonstrated by its revenue and earnings growth. However, the stock has seen some downturn in 2022 and is currently trading close to the consensus estimate.
There is some uncertainty about the future value or potential of NextEra Energy’s stock, as indicated by the recent decline in its price. However, some analysts have raised their price targets for the stock since the company’s August earnings report, which could suggest that there is still room for the stock to grow. Additionally, NextEra Energy is known for its strong dividend, which it has consistently increased over the past 28 years, earning it a place in the Dividend Aristocrats club. This may make the stock an appealing option for investors looking for a combination of potential capital appreciation and income.
Concerning NextEra Energy
NextEra Energy, Inc is a company that provides electric power to customers in North America through its various subsidiaries. It generates electricity using a variety of methods, including wind, solar, nuclear, coal, and natural gas. The company also works on developing and operating clean energy solutions, such as renewable energy facilities and battery storage projects. Additionally, it engages in the sale of energy commodities and the ownership, development, and management of electric generation facilities in wholesale energy markets.
- Sunrun (NASDAQ:RUN)
Investing in a company that is a leader in its industry can be a good strategy. Sunrun, with the ticker symbol RUN, is a prime example of this. The company has a large presence in the U.S. solar energy market, with over 600,000 installations across close to two dozen states. While the company’s stock price has been relatively flat in recent years, it has seen consistent growth in revenue on a sequential and year-over-year basis. Despite not always being profitable, the company’s strong revenue growth and positive industry trends suggest that profitability may be on the horizon.
Based on the opinions of the analysts tracked by MarketBeat, Sunrun’s stock (RUN) is generally seen as a good investment opportunity. The consensus among these analysts is to buy the stock, with a price target of over $48, which would represent a 26% increase from its current price. In the time since the company last reported earnings in August, several analysts have raised their price targets for the stock, with three of these targets being significantly higher than the consensus estimate.
Concerning Sunrun
Sunrun is a company that provides solar energy solutions to residential customers. It offers solar service packages and installs solar energy systems for homeowners. The company serves customers through a range of channels, including direct sales, solar partnerships, and strategic partnerships. Sunrun is involved in all aspects of the solar energy process, including the design and development, installation and sale as well as the ownership and maintenance of residential solar energy systems.
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