Time to Buy These Top-Rated Solar Industry Stocks for a Rebound
The use of solar energy in power grids is still a strong component concerning the future of alternative energy. Although the concept of solar energy has been around for centuries, technological advancements to make this renewable energy form more affordable in mass production remain in its early stages.
Naturally, a more stable inflationary environment is critical for solar industry stocks and many of these equities look poised for an extended rebound with potential rate cuts looming this year.
Nextracker Inc. NXT
With it being noteworthy that the Zacks Solar Industry is currently in the top 28% of over 250 Zacks industries, Nextracker’s stock could certainly have more upside. Sporting a Zacks Rank #1 (Strong Buy), Nextracker’s integrated solar trackers and software solutions enable solar panels in utility-scale power plants to follow the sun’s movement to optimize production.
Nextracker’s top and bottom line expansion is very intriguing with total sales projected to climb 28% in fiscal 2024 and jump another 17% in FY25 to $2.85 billion.
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More impressive, annual earnings are expected to skyrocket to $2.65 per share this year versus $0.24 a share in 2023. Even better, FY25 EPS is forecasted to leap another 22%. Plus, earnings estimate revisions have risen sharply for both FY24 and FY25 over the last 60 days which attributes to Nextracker’s strong buy rating.
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First Solar FSLR
As the world’s largest provider of solar modules, First Solar’s stock has become more attractive and currently sports a Zacks Rank #2 (Buy).
Trading 36% from its 52-week highs, First Solar’s stock currently trades at a very reasonable 10.8X forward earnings multiple with annual EPS projected to soar 75% in FY24 to $13.55 compared to $7.74 a share last year. Better still, FY25 EPS is forecasted to climb another 56% to $21.16 per share with First Solar's increased profitability fueled by projections of high double-digit percentage growth on its top line as well.
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Other Solar Stocks to Watch
Two other solar industry stocks to watch are Canadian Solar CSIQ and Enphase Energy ENPH which both land a Zacks Rank #3 (Hold). Trading near its lows of just under $20 a share, Canadian Solar is a leading manufacturer of solar modules and battery energy storage solutions while Enphase Energy’s stock is 52% from its highs and is a prominent global provider of energy management technology for the solar industry.
While there could still be better buying opportunities ahead, Canadian Solar and Enphase Energy are both profitable and expecting a significant rebound in their bottom lines in FY25.
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First Solar, Inc. (FSLR) : Free Stock Analysis Report
Nextracker Inc. (NXT) : Free Stock Analysis Report
Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report
Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report
