Solar energy is one of the most valuable forms of renewable energy. The inexhaustible source of energy is used by solar companies to generate electricity and heat. After seeing the harmful effects of non-environment friendly forms of energy generation, the world is shifting towards the likes of solar energy for their energy needs.
Therefore, the demand for solar companies and solar stocks is at a rise. The solar sector and solar stocks have been one of the most well-performing ones in 2019. And, the demand is not here to stop! The prices of solar stocks have reported whopping gains, and the strong demand is expected to continue.
|ORA||Ormat Technologies, Inc.||$72.42||5.51%||4.1B|
|FSLR||First Solar, Inc.||$113.95||22.12%||12.1B|
|SEDG||Solaredge Technologies Inc||$350.22||32.74%||18.3B|
|ENPH||Enphase Energy Inc||$219.10||113.11%||29.5B|
|BEP||Brookfield Renewable Partners LP||$39.47||12.19%||13.4B|
|CSIQ||Canadian Solar Inc.||$40.00||5.29%||2.4B|
|JKS||JinkoSolar Holding Co., Ltd||$59.21||-0.85%||2.8B|
|NEP||Nextera Energy Partners LP||$86.35||35.73%||6.6B|
|BEP.UN||Brookfield Renewable Partners LP||$48.65||4.11%||13.4B|
Factors to Consider Before Investing in Solar Stocks
Solar stocks offer an excellent opportunity for investors with a long-term horizon. The solar companies are implementing better technology to increase production and efficiency and to reduce costs.
At the same time, investors must also reflect on the volatility associated with solar stocks. The exceptionally-high valuations of solar stocks give way to anxiety among investors and may lead to a sharp drop in prices.
Additionally, solar stocks are negatively correlated to the oil and energy stocks. When the oil and energy prices go down, consumers tend to buy less of solar energy leading to underperformance in solar stocks.
Which Solar Stocks Should I Buy?
The selection of solar stocks to buy depends on the risk appetite and time horizon of investors. To make it easy for you, we have consolidated a list of the solar stocks to choose from.
Solar stocks hold strong potential for future growth. Many solar stocks are expensive at the time, but the recent drop in their prices offer a great opportunity for investors looking for long-term capital gains.
Despite the high volatility and correlation with the oil and energy stocks and ETFs, solar stocks demonstrate an attractive valuation.