Solar stocks have taken a significant hit in recent months. Many experts, however, believe the declines were not justified and are predicting higher stock futures in the coming months. One of the main reasons for the declining stock prices is the Federal Energy Regulatory Commission’s recent decision to eliminate requirements for utility companies to provide a long-term fixed cost for specific facilities. It’s understandable for an investor in solar stocks to read this as being a threat to the future viability of renewable energy and sell their stocks immediately. While those actions have created a volatile market, renewable energy experts don’t expect the price of solar stocks to be down for long. Here are three solar stocks to consider that have a positive long-term outlook.
Daqo New Energy (DQ)
Daqo New Energy is located in China and is most widely known for its polysilicon used to build solar modules. As the demand for polysilicon increases, so will its price, and provide more investment opportunities as a result. The market cap of Daqo New Energy is under $1 billion and they also have low price-to-earnings ratios. Combine this with China having relatively low solar power costs and Daqo New Energy provides some interesting investment opportunities for investors.
JinkoSolar stands out due to its high-profit margins. One of the main reasons for their high-profit margins is because of the combination of low shipping costs, no tariffs and the continued solar energy expansion in China. Low costs and high consumer demands are great combinations for any company, and JinkoSolar is taking full advantage of it. But even with this positive outlook, an investor should look at the big picture of any company. The fact that stockholders for JinkoSolar include major company names makes it a solar stock option that stands out.
Solar energy trends in the United States are worth keeping a close eye on. States across the country are mandating that a certain percentage of their electricity must come from a renewable energy source. The unique aspect of SunPower is they are exempt from solar tariffs in the United States, so they stand to be one of the biggest beneficiaries of the mandates. States are slowly putting various requirements in place, including the requirement of all new homes to include solar panels. Assuming these trends continue across the country over the next decade, SunPower is one of the better options an investor can look at regarding solar stock investing.
Stock Investing Info pays close attention to the trendy topic of solar energy. Stock futures are seemingly always volatile in this industry because no one truly knows how or when renewable energy mandates will take off. Still, any investor looking for somewhat low-risk investment opportunities with high potential may find interest in solar stocks. Don’t hesitate to contact us if you have any questions, concerns or need more insight into the intriguing industry of renewable energy.