Top solar stocks to consider amid renewable energy push

Summary

  • Enphase Energy (NASDAQ: ENPH) announced to launch an Encharge battery storage system in Germany. Its stock price rose 290% in one year.
  • First Solar, Inc. (NASDAQ: FSLR) net income grew 131% year over year in the quarter ended March 31, 2021.
  • Generac Holdings Inc. (NYSE: GNRC) net income for the quarter ended March 31, increased by 235% YoY. The stock price gained surged 237% in one year.

Solar energy stocks started gaining momentum this year after President Biden announced his expansion plans in the renewable energy sector to combat climate change. As a result, solar installations are growing at a steady rate across the country.

Although fossil fuels are the first available energy source, solar stocks are leading the shift towards renewables. However, the impetus may slow down due to the rising cost of polysilicon used in producing solar modules. But government subsidies might help remove the hurdles.

Here we explore top solar stocks in the US market.

Enphase Energy, Inc. (NASDAQ: ENPH) is an energy technology company headquartered in Fremont, California. It provides easy to use solutions to manage solar generation & storage and communication on its single platform and supply micro inverter-based solar-plus-storage systems.

It has a market capitalization of US$ 25.2 billion and a P/E ratio of 299.53.

Furthermore, it generates its revenue from the distributors who resale its technology solutions to solar installers.

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Its net revenue for the quarter ended March 31 was US$301.75 million, nearly 47% up year over year. It booked a net income of US$ 31.70 million in this quarter, 2021, compared to US$ 68.94 million a year ago in the March quarter. The reason could be attributed to increased interest expenses and loss of partial settlement of convertible notes.

Its cash and cash equivalent increased significantly to US$ 1.49 billion in March quarter compared to US$ 593.8 million in the previous quarter ended December 31, 2020.

Today it announced to launch Encharge battery storage system in Germany. Its share price rose 290% in one year at US$ 185.71 as of June 29, 2021.

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Source: Pixabay

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First Solar, Inc. (NASDAQ: FSLR) is engaged in designing and manufacturing photovoltaic panels, modules, and solar power systems for utility-scale development projects.

Its market capitalization is US$ 9.85 billion, and its P/E ratio is 19.15 with a 21.11 forward P/E 1 year.

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First Solar net sales were reported at US$803.37 million in the quarter ended March 31, 2021, a 51% increase year over year. Its net income was US$ 209.67 million in the same quarter, 131% growth year over year.

The cash and cash equivalent were US$ 972.88 million as of March 31.

Its share grew 87% in one year at the closing price of US$ 92.67 on June 29, 2021.

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Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE: HASI) provides financing to the energy companies in the United States both through debt and equity. Its focus is to invest in companies working to reduce carbon emissions or finding climate solutions.

It has a market capitalization of US$4.44 billion. Its P/E ratio is 41.23 and forward P/E 1 year is 38.60.

Company revenue comprises gain on the sale of receivables and investments, fee income, rental income, and interest income.

HASI’s revenue for March quarter 2021 was US$ 51.70 million compared to US$ 40.83 million in the same quarter a year ago, reflecting a growth of approximately 27%.

The company booked a net income of US$ 51.02 million for March quarter 2021, showing 110% growth year over year. Its cash and cash equivalent (unaudited) as of March 31, 2021, was reported at US$232.33 million.

Share prices gained around 99% in one year at the closing price of US$56.74 on June 29, 2021.

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Source: Pixabay

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Generac Holdings Inc. (NYSE: GNRC) designs and manufactures energy technology solutions. It provides power generation equipment, grid service solution, power products for commercial and residential purposes and energy storage systems.

GNRC is based in Waukesha, Wisconsin and has a market capitalization of US$ 25.77 billion. Its P/E ratio is 57.32 and forward P/E 1 year is 40.48.

The company’s net sales for the March quarter was US$ 807 million compared to US$ 476 million for the corresponding quarter a year ago.

Its net income for the quarter was US$ 149 million, reflecting a 235% increase year over year. Cash and cash equivalent position more than doubled in March quarter 2021 compared to the previous quarter to be at US$ 744.8 million.

On June 1, GNRC announced to acquire Deep Sea Electronics Limited, a control designer and manufacturer.

The share price gained tremendously in one year, about 237%, at the closing price of US$410.42 on June 29, 2021.

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DAQO New Energy Corp. (NYSE: DQ) is a polysilicon manufacturer company. The company has two segments, Polysilicon and Wafer.  It is headquartered in Huadu Mansion, Shanghai.

Its market capitalization is US$4.78 billion. DQ’s P/E ratio is 27.71, and forward P/E 1 year is 7.63.

Its revenue for FY 2020, ended December 31, was US$ 675.6 million, 93% more than FY 2019 revenue of US$ 350 million. The company’s net income applicable to common shareholders was US$ 129.20 million for FY 2020 compared to US$ 29.52 million in FY 2019. The cash and cash equivalent were US$ 118.4 at the end of FY 2020.

The share price soared astounding 350% in the last year at the closing price of US$ 66.78 on June 29, 2021.

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Sunnova Energy International Inc. (NYSE: NOVA) is a US$ 4.15 billion market capitalized company engaged in providing residential solar power and energy storage services. It is serving more than 116,000 customers in the United States’ 25 states and territories.

NOVA revenue for March quarter 2021 was US$ 41.28 million compared to US$ 29.83 million in the same quarter of 2020.

It booked a net loss of US$ 32.98 million, compared to the net loss of US$ 71.08 million in the corresponding quarter the previous year. 

Its share price increased nearly 122% in one year to close at US$ 37.81 on June 29, 2021.


Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

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