5 solar stocks to keep an eye on in February

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 5 solar stocks to keep an eye on in February
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Highlights

  • First Solar, Inc. (NASDAQ: FSLR) has a P/E ratio of 17.39. For the nine months ended September 30, 2021, its net income was US$337 million, up 19% YoY.
  • Enphase Energy, Inc. (ENPH) has P/E ratio of 154.59. It has deployed more than 1.7 million residential and commercial systems in 130 countries.
  • SolarEdge Technologies, Inc. (NASDAQ: SEDG) has a P/E ratio of 93.58. Its net income grew around 4% YoY for the nine months ended September 30, 2021.

The renewable energy industry is growing rapidly with greater partnerships between stakeholders. Climate change and depleting natural resources is accelerating the growth in renewables. Governments are levying carbon tax to limit industrial emissions. More companies are investing in carbon projects while simultaneously making efforts to reduce pollution.   

According to the International Renewable Energy Agency (IRENA), the sector grew rapidly in 2020, with solar and wind energy contributing the most. This shift towards renewables is helping companies like Tesla to strengthen their foothold in the market.

Here we explore the top five solar energy stocks in the market. 

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SunPower Corporation (NASDAQ: SPWR)

The San Jose, California-based SunPower offers solar technology and energy in the US and Canada. Its products cover home energy and storage solutions.

Its sales channels are dealers and resellers in residential and commercial markets. Sun Power has a market capitalization of US$2.91 billion, a P/E ratio of 9.86, and a forward P/E for one year of 536.67. 

For the nine months ended October 3, 2021, the company earned revenue of US$939 million compared to US$783 million in the corresponding period of 2020.

Its net loss came in at US$57.55 million or US$(0.33) per share diluted compared to the net profit of US$62.57 million or US$0.37 per share diluted. The stock traded in the range of US$51.72 to US$14.32 in the last 52 weeks. The stock closed at US$16.1 on February 8, 2022.

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5 solar stocks to keep an eye on in February. 

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Sunrun Inc. (NASDAQ: RUN)

Sunrun is based in San Francisco, California. It installs solar energy systems and provides maintenance services in the residential market in the US.

Sunrun’s customers enter into a long-term agreement of 20-25 years with the company for using its solar energy systems. The company also sells solar panels and racking systems. 

Its market capitalization is US$5.31 billion. 

Sunrun booked revenue of US$1.17 billion for the nine months ended September 30, 2021, compared to US$601.8 million for the same period in 2020.

It incurred a net loss of US$40.9 million or US$(0.20) per share diluted compared to US$4.07 million or US$(0.03) per share diluted in the same period of 2020.

The stock traded in the range of US$84.81 to US$21.70 in the last 52 weeks and closed at US$23.99 on February 8, 2022.

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Enphase Energy, Inc. (NASDAQ: ENPH)

The Fremont, California-based Enphase Energy Inc provides solar energy management technology. The company offers solar power generation, storage, and management solutions on one platform. 

Enphase shipped more than 39 million microinverters and deployed more than 1.7 million residential and commercial systems in 130 countries.

Enphase has a market capitalization of US$21 billion, a P/E ratio of 154.59 and a forward P/E ratio for one year of 71.53. 

For the nine months ended September 30, 2021, its net revenue was US$969 million compared to US$509 million for the same period in 2020.

The net income grew to US$92.86 million or US$0.65 per share diluted versus US$61.00 million or US$0.44 per share diluted in the same period a year ago.

The stock touched the highest price of US$282.46 and the lowest price of US$108.88 in the last 52 weeks. The ENPH stock closed at US$144.55 on February 8, 2022.

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First Solar, Inc. (NASDAQ: FSLR)

First Solar is based in Tempe, Arizona. The company manufacturers solar photovoltaic (PV) panels, modules, and systems. These are used in utility-scale development projects. Its solar modules convert sunlight into electricity through advanced semiconductor technology. 

The company has a market capitalization of US$7.81 billion and a P/E ratio of 17.39. Its forward P/E for one year is 16.34.

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For the nine months ended September 30, 2021, the company booked net sales of US$2.02 billion versus US$2.10 billion in the same period in 2020.

Its net income came in at US$337 million or US$3.16 per share diluted compared to US$282.6 million or US$2.65 per share diluted for the corresponding nine months of 2020.

First Solar’s cash and cash equivalents grew to US$1.37 billion as of September 30, 2021, against US$1.23 billion as of December 31, 2020.

Its stock traded in the range of US$123.12 to US$67.71 in the last 52 weeks. The FSLR stock closed at US$70.39 on February 8, 2022.

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5 solar stocks to keep an eye on in February.

Source - pixabay

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SolarEdge Technologies, Inc. (NASDAQ: SEDG)

The Israel-based SolarEdge Technologies designs and develops optimized inverter systems for solar PV installations. It provides inverters, power optimizers, cloud-based monitoring platforms for residential, commercial, and small-utility scale installations. It sells its products through distributors and whole sellers and directly to retail clients.

Its P/E ratio is 97.99, and the forward P/E for one year is 71.88. The company’s current market capitalization is US$13.6 billion. 

For the nine months ended September 30, 2021, its revenue was US$1.4 billion compared to US$1.1 billion in the corresponding period of 2020. 

The company booked a net income of US$128 million or US$2.32 per share diluted compared to US$122.7 million or US$2.33 per share diluted in the nine months ended September 30, 2020. 

The stock closed at US$248.71 on February 8, 2022. Its price range was US$389.71 to US$199.33 in the last 52 weeks. 

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Bottomline

The Dow Jones US Renewable Energy Equipment Total Stock Market Index declined more than 50% in one year. Although the renewable energy index underperformed the other broad market index, its growth potential remains strong.

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