Tax credits, government initiatives to meet net-zero carbon emission goals, and rising demand for solar panel installations should bolster the solar industry’s growth in the coming months. Therefore, Wall Street analysts expect solar stocks ReneSola (SOL), SPI Energy (SPI), and I Sun (ISUN) to more than double in price over the next 12 months. Read on to learn more.
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According to a recent Solar Energy Industries Association (SEIA) report, the solar industry surpassed three million solar installations in 2021 and the residential solar market increased 21% year-over-year. Although supply chain constraints and rising raw material costs have negatively affected installations, the year-over-year increase in utility prices has supported the sector’s growth.
Furthermore, with the introduction of the federal solar investment tax credit (ITC), which provides a 26% tax credit for systems installed in 2020-2022, more homeowners and commercial sectors have been installing solar panels. The global solar energy market is projected to reach $223.3 billion by 2026, achieving a 20.5% CAGR.
Given this backdrop, we think it could be worth adding solar stocks ReneSola Ltd (SOL), SPI Energy Co., Ltd. (SPI), and iSun, Inc. (ISUN) to one’s watchlist. Wall Street analysts expect them to more than double in price over the next 12 months.
ReneSola Ltd (SOL)
SOL is a global solar project developer and operator that focuses on solar power project development, construction management, and project financing services. The Yaozhuang Town, China-based company operates through three segments: Solar Power Project Development; EPC Services; and Electricity Generation Revenue. As of December 31, 2020, SOL operated approximately 100 solar power projects with an aggregate capacity of 173 megawatts.
For the third quarter, ended September 30, 2021, SOL’s net revenues increased 59.4% year-over-year to $15.54 million. The company’s gross profit grew 3.1% from its year-ago value to $6.09 million. Its income from operations came in at $2.72 million. Also, the company’s net income amounted to $711,000 during the period.
SOL’s revenue increased 62.6% year-over-year to $132.12 million in its fiscal year 2022. The company has an impressive earnings surprise history; it beat the consensus EPS in three of the trailing four quarters. And its EPS is expected to grow 83.3% next year. The stock has surged 5.4% in price over the past five trading days.
Closing the last trading session at $6.02, the $13.75 average analyst price target represents a 128.4% potential upside.
SPI Energy Co., Ltd. (SPI)
Headquartered in Sha Tin, Hong Kong, SPI provides photovoltaic solutions for business, residential, government, utility customers, and investors. The company operates through the solar energy products and services segment. SPI also offers engineering, procurement, and construction services in Greece, the United States, Italy, Japan, the United Kingdom, Australia, and regulatory.
This month, SPI’s Solar business acquired the existing lease for the original 140,000 square foot Sunergy PV solar plant in Sacramento, California. With this facility, SPI should support its growth and expand the green economy with a California-based solar module manufacturing facility that will further enable the company to deliver Made-in-USA products.
During the six months ended June 30, 2021, SPI’s revenue increased 40.8% year-over-year to $79.4 million. The company’s gross profit grew 138.7% from its year-ago value to $7.4 million. And its cash and cash equivalents …….