Top trending solar energy stocks to watch: ARRY, SHLS, RUN, SPWR & FTCI

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Highlights 

  • Array Technologies, Inc. (NASDAQ: ARRY) stock surged 22.00% to 14.03 at 8:34 am ET on June 6.
  • Shoals Technologies Group, Inc. (NASDAQ: SHLS) stock has a P/E ratio of 307.2 and a forward P/E for one year of 65.21.
  • SunPower Corporation (NASDAQ: SPWR) provides solar technology and energy services. It reported a 40% increase in customer numbers in Q1, 2022. 

Solar energy is a fast-growing sector, helped by the government's push for renewable energy. On Monday, solar stocks were trending after the White House announced that it wouldn't introduce new tariffs on solar imports for the next two years. 

The decision could benefit solar panel installers that import the panels from Asian countries, although it may be a blow for the indigenous solar panel manufacturers. 

In March this year, the Commerce Department announced investigating solar imports from four Cambodia, Thailand, Vietnam, and Malaysia to confirm whether Chinese producers were illegally circumventing tariffs by routing their operations through these countries.

First Solar, Inc. (FSLR), Brookfield Renewable (BEP), and Sunlight Financial Holdings, Inc. (SUNL) are a few of the popular stocks in this category. Here we discuss five solar stocks which are trending today, backed by the news.

Array Technologies, Inc. (NASDAQ: ARRY)

The stock surged 22.00% to 14.03 at 8:34 am ET in the pre-market on June 6.

New Mexico-based Array Technologies Inc manufactures ground-mounting systems used in solar energy projects. Its products include an integrated system of electric motors, gearboxes, steel supports, etc., that move the solar panels to maintain their optimum sun orientation.

For the first quarter ended March 31, 2022, Array generated a revenue of US$300.59 million, a 21% increase YoY, compared to US$248.24 million in the same quarter a year ago.

The company posted a net loss of US$33.66 million or US$0.23 per share diluted versus the net income of US$4.58 million or US$0.04 per share diluted in the March quarter of 2021.

For the full-year ending December 31, 2022, the company expects revenue to be between US$1.30 billion and US$1.50 billion and adjusted net income per share to be in the range of US$0.25 to US$0.35.

ARRY stock traded from US$27.67 to US$5.45 in the last 52 weeks. Its forward P/E for one year is 48.21. The stock closed at US$11.50 on June 03, 2022. Its market capitalization is US$1.73 billion.

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Shoals Technologies Group, Inc. (NASDAQ: SHLS)

SHLS stock rose 21.28% to US$18.6292 at 8:34 am ET in the pre-market.

Portland, Tennessee-based Shoals Technologies Group Inc., provides EBOS or electrical-balance-of-system solutions for solar energy projects. EBOS comprises components essential for carrying electric current from solar panels to an inverter. The company sells its products to the engineering, procurement and construction firms engaged in building solar energy projects.

It earned a revenue of US$67.98 million, an increase of 49% YoY, for the quarter ended March 31, 2022, compared to US$45.6 million for the same period in 2021. It incurred a net loss of 4.65 million or US$0.02 per share diluted compared to a net loss of US$8.33 million or US$0.06 per share diluted in the March quarter of the previous year.

For full-year 2022, the company expects the revenue to be in the range of US$300 million to US$325 million and the adjusted net income to be between US$45 million and US$53 million.

The stock traded in the range of US$37.61 to US$9.58 in one year. Its P/E ratio is 307.2, and the forward P/E for one year is 65.21. Its market capitalization is US$2.09 billion.

The stock closed at US$15.36 on May 3, 2022.

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FTC Solar, Inc. (NASDAQ: FTCI)

The stock was up by 18.39% at 8:35 am ET in pre-market to US$4.70.

Founded in 2017, FTC Solar Inc is located in Austin, Texas. It provides advanced solar tracker systems worldwide. These tracker systems are supported by proprietary software and engineering services. The company offers differentiated software, services, and products to generate energy, save costs for customers, and boost solar energy adoption.

For the quarter ended March 31, 2022, FTC Solar booked a net loss of US$27.79 million or US$0.28 per diluted share compared to a net loss of US$7.44 million or US$0.11 per share diluted in the previous year. Its revenue came in at US$49.55 million compared to US$65.7 million in the March quarter of 2021.

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It also received its first projects in Kenya, South Africa, and Malaysia in the quarter. 

The stock traded in the range of US$13.98 to US$2.12 in the last 52 weeks. Its market capitalization is US$513.5 million. It closed at US$3.97 on June 3, 2022.

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Sunrun Inc. (NASDAQ: RUN)

The RUN stock price increased by 13.33% to US$30.35 in the pre-market at 8:35 am ET on Monday.

San Francisco, California-based Sunrun, provides solar energy systems in the US. It designs, develops, installs, and maintains residential solar energy systems. It owns systems built by Sunrun or its partners. Its customer agreements generally span 20-25 years. 

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The company posted a revenue of US$495.78 million for the quarter ended March 31, 2022, compared to US$334.79 million for the same period a year ago.

It incurred a net loss of US$156.47 million or US$0.42 per share diluted compared to US$204.32 million or US$0.12 per share diluted in the March quarter of 2021.

Sunrun had 689,774 customers, including 588,941 subscribers, as of March 31, 2022. Its customers grew 20% in the first quarter of 2022 YoY.

The stock traded in the range of US$60.60 to US$16.80 in the last 52 weeks. It has a market capitalization of US$6.08 billion. The stock closed at US$26.78 on May 3, 2022.

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SunPower Corporation (NASDAQ: SPWR)

The stock was priced at US$20.20, up 9.90%, in the pre-market at 8:35 am ET.

SunPower provides solar technology and energy services in the US and Canada. This San Jose, California-based company provides home energy, fully integrated solar, and storage solutions to customers. It offers hardware, software, financing options and smart energy solutions. 

It reported a 41% increase in revenue YoY in the Q1, 2022 earnings. The revenue for the quarter ended April 3, 2022, came in at US$35.28 million compared to US$240.14 million in the same quarter in the previous year.

It incurred a loss of US$28.46 million or US$0.16 per share diluted compared to a net loss of US$49.49 million or US$0.29 per share diluted in the corresponding period in 2021.

The company’s customer numbers grew by 16,500 or a 40% increase YoY.

The SPWR stock traded in the range of US$34.61 to US$12.78 in one year. Its forward P/E ratio for one year is 77.92. The stock has a market capitalization of US$3.38 billion. It closed at US$18.38 on May 3, 2022. 

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Bottom line:

The two-year pause on any new tariffs would provide the much-needed push to the renewable energy sector. However, it may negatively impact domestic manufacturers. This year, the stock market has been volatile; hence, investors should carefully analyze the stocks before investing in the stock market.


 


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