Sunday Nov 27, 2022

3 Solar Stocks Set to Shine Brightest in 2022 – InvestorPlace


Solar stocks, for the most part, ended 2021 on a weak note. Many investors decided to take money off the table following significant gains seen in alternative energy names. For instance, the Dow Jones U.S. Renewable Energy Equipment Total Stock Market Index was down 24.0% in 2021.

Yet, despite the volatility in shares prices of solar stocks, the adoption of this alternative energy source is gaining popularity. According to a report by the Solar Energy Industries Association (SEIA), solar installations in third quarter surged by 33% year-over-year (YOY), the best Q3 on record. At present, “One out of every 600 US homeowners is now installing solar each quarter.”

Nonetheless, the outlook for 2022 has been lowered due to supply-chain constraints as well as global price increases. Moreover, the U.S. solar sector has recently come under pressure. First, the U.S. Commerce Department declined to investigate allegations of an unfair Chinese dumping.

In addition, “A U.S. judge overseeing trade issues on Tuesday overturned a decision by then-President Donald Trump to allow a re-imposition of tariffs on some imported solar panels. The decision … is a defeat for some domestic manufacturers.”

Finally, Wall Street is debating whether President Joe Biden’s Build Back Better plan can still be resuscitated. readers might remember that Senator Joe Manchin refused to support the social spending plan. The bill includes $300 billion on clean energy-related tax incentives, and could enable solar installations to grow by 31% through 2026.

Regardless of short-term challenges, renewable energy stocks should appeal to readers who want to invest for sunny days ahead. With that information here are three solar stocks that could gain traction in 2022:

  • First Solar (NASDAQ:FSLR)
  • Sunnova Energy International (NYSE:NOVA)
  • SunPower (NASDAQ:SPWR)

Solar Stocks: First Solar (FSLR)

Source: IgorGolovniov /

52-week range: $67.71 – $123.13

First Solar provides photovoltaic (PV) panels and modules, and is particularly known for its thin-film technology. The Arizona-based company has production lines in Ohio, India, Vietnam, and Malaysia. Wall Street has been keen on the manufacturing expansion, especially in India.

First Solar reported Q3 results in early November. Revenue of $584 million implied a decline of 37% YOY. Net income came in at $45 million, or 42 cents per diluted share, down from $155 million, or $1.45 per diluted share in the year-ago quarter. Cash and equivalents ended the quarter at $1.9 billion. Free cash flow stood at $140.7 million, up $39.1 million from the prior-year period.

“Commercially, we had a good quarter, increasing our record year-to-date bookings to 10.5 GWdc,” cited CEO Mark Widmar on the results.

Management has recently signed multi-year contracts with Lightsource bp and the energy giant BP (NYSE:BP) for its thin-film PV solar modules. In addition, the U.S. International Development Finance Corporation (…….


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