Solar stocks have experienced a significant upswing following the recent presidential debate, where the focus on alternative energy sources was highlighted. Notable companies like First Solar, Sunrun, and Array Technologies have shown promising growth potential. However, despite this surge, the Zacks Solar Industry still lags behind other sectors.
The Rise of First Solar
First Solar, a leading solar module manufacturer, has seen a remarkable spike in its stock price post-debate, surging by nearly 15%. With projections of substantial growth in fiscal 2024 and FY25, First Solar remains an attractive long-term investment despite its current Zacks Rank #3.
Image Source: Zacks Investment Research
Sunrun’s Strong Position
Sunrun, a provider of residential solar energy systems, holds a Zacks Rank #1 (Strong Buy) and has witnessed positive earnings estimate revisions. With a robust financial outlook, including a projected sales rebound in FY25, Sunrun demonstrates potential for growth despite current market challenges.
Image Source: Zacks Investment Research
Array Technologies’ Recovery Potential
Specializing in ground mounting systems for solar projects, Array Technologies is on track for a possible rebound. Despite recent stock price declines, the company’s profitability and low trading value make it an intriguing option for investors eyeing a turnaround.
Image Source: Zacks Investment Research
Evaluating Solar Industry Performance
Year-to-date, the Zacks Solar Market has underperformed compared to broader market indexes, with a -16% decline. While recent rallies offer hope for investors, caution is advised due to ongoing market uncertainties and inflationary pressures affecting the sector.
Image Source: Zacks Investment Research
Final Advice
Though the solar industry shows signs of recovery, investing in these stocks requires careful consideration. While First Solar, Sunrun, and Array Technologies present compelling opportunities, risks remain due to market volatilities and economic factors impacting the sector’s growth.
