3 Solar Stocks You’ll Regret Not Buying Soon
When the conversation turns to energy, many investors fixate on the usual suspects, inadvertently sidestepping the solar stocks to buy. Moreover, it’s quite an oversight, especially when some solar stocks are simmering, waiting for their moment in the sun. It’s baffling, considering the Invesco Solar ETF (NYSEARCA:TAN) has dipped by over 15.2% year-to-date, signaling potential bargains.
Nevertheless, the market’s long-term potential is as mouthwatering as ever, with Allied Market Research projecting the global solar industry to bask in a valuation exceeding $300 billion by 2032, generating a radiant CAGR of 12.3%. Yet, the long-term trajectory beams with promise. For the astute investor, the message is clear: this might be the perfect time to unearth the best solar stocks to buy now, loading up on them while they are generously discounted.
First Solar (FSLR)
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Bathing in Arizona’s sun, First Solar (NASDAQ:FSLR) has effectively established itself as a luminary in the solar energy space. The company’s second-quarter numbers highlighted its radiant performance, with net income that improved threefold and a healthy 31% hike in sales year-over-year. Moreover, its earnings-per-share of $1.59 blew past last year’s result at 52 cents. FSLR continues to witness robust demand for its latest Series 7 thin-film solar module technology, along with a sizeable improvement in capacity and improved margins.
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First Solar recently absorbed European thin-film production heavyweight Evolar A.B. in a $38 million deal in a pivotal move. Moreover, with an eye on the future, the firm has effectively earmarked a whopping $1.1 billion for its fifth U.S. production hub, set to light up by 2026. Hence, for First Solar, the future looks astonishingly bright.
Array Technologies (ARRY)
Array Technologies (NASDAQ:ARRY) is a top producer of solar trackers that effectively fine-tune solar arrays’ positioning. It’s an excellent pick-and-shovels play at the burgeoning solar industry, but its shares have witnessed sluggish growth this year on the back of a few headwinds.
Despite the share slump, Array’s recent second-quarter report illuminates a sunny trajectory. It reported a non-GAAP earnings-per-share of 47 cents, overshooting predictions by a hefty 29 cents. Revenue surged, tallying $507.7 million, marking an impressive 21% year-over-year growth while beating expectations by $59.5 million. Moreover, the discernible uptick in the total number of MWs shipped and the average selling price remains a testament to the firm’s strategic pricing moves.
With contracts and awarded orders as of June 30 amounting to a whopping $1.7 billion, the horizon looks clear for Array. Given these metrics, it’s hardly surprising that analysts forecast buoyant double-digit revenue growth for both this year and the next. The solar boom is here, and Array Technologies appears set to ride the wave with aplomb.
Enphase Energy (ENPH)
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While Enphase Energy (NASDAQ:ENPH) faces stock market turbulence, savvy investors will likely remain undeterred by the Street’s overreaction. Last month’s second-quarter results painted an interesting tapestry; while U.S. sales witnessed a 12% drop from the prior-year period, European shores resonated with a noteworthy 25% sales uptick. In tandem, this international ebb and flow resulted in an eye-catching 34% sales growth.
However, market reactions post-earnings have crafted a prime opportunity for investors to seize shares at a steal. Enphase sits atop the global throne, specializing in micro inverter-based solar-plus-storage systems. It delivered $2.3 billion in sales last year alone, with a vast network of 3.5 million systems spanning 145 countries. Layer that up with its impressive operating cash flow of $269 million, and Enphase’s trajectory becomes clear. With analysts at TipRanks projecting a 50% ascent from present prices, Enphase seems primed for a future brimming with potential.
On the date of publication, Muslim Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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