The solar sector represents companies involved in the production, installation, and distribution of solar energy technologies. These firms range from solar panel manufacturers to installers and component suppliers. Solar stocks offer ownership in these renewable energy-focused companies. The sector has gained attention due to growing environmental concerns and the push for clean energy sources. Government incentives and declining costs have boosted solar energy adoption in recent years.
Investing in solar stocks can offer several potential benefits. The sector aligns with the global trend towards renewable energy sources. Many countries have set ambitious clean energy targets, potentially driving long-term demand. Technological advancements continue to improve solar efficiency and reduce costs. However, solar stocks also come with risks. The industry is sensitive to government policies and subsidies. Fluctuations in raw material prices can impact profit margins. Competition is intense, with new entrants and evolving technologies challenging established players.
When considering solar stocks, it’s important to evaluate a company’s technological edge and cost-efficiency. Assess their position in the value chain and geographic diversification. Consider the regulatory environment in their key markets. Be aware of the cyclical nature of the solar industry. Look at the company’s financial health and ability to weather market fluctuations. Taking this into consideration, here are two solar stocks to keep on your watchlist in the stock market today.
Solar Stocks To Watch In The Stock Market Today
- First Solar Inc. (NASDAQ: FSLR)
- Enphase Energy Inc. (NASDAQ: ENPH)
First Solar (FSLR Stock)
To begin, First Solar Inc. (FSLR) is a leading manufacturer of photovoltaic (PV) solar modules. They specialize in thin-film solar technology, which offers advantages in certain environmental conditions. First Solar is involved in the design, manufacture, and sale of solar modules for large-scale solar power plants. The company also provides operations and maintenance services for photovoltaic solar power systems.
At the end of July, First Solar announced a beat for its second quarter 2024 financial results. Diving in, the company posted Q2 2024 earnings of $3.25 per share, with revenue of $1.01 billion. That said, estimates or the quarter were an EPS of $2.67, on revenue estimates of $946.22 million. In addition, revenue for the quarter increased by 24.65%, on a year-over-year basis.
So far this year, shares of FSLR stock have advanced by 30.34% year-to-date. Moreover, during Wednesday morning’s trading session, First Solar stock are trading green on the day by 7.72%, currently trading at $224.29 a share.
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Enphase Energy (ENPH Stock)
Let’s now move to Enphase Energy Inc. (ENPH). Enphase is a technology company that designs and manufactures home energy solutions. They are best known for their microinverter technology, which converts direct current (DC) electricity from solar panels into alternating current (AC). Enphase also offers energy storage systems, monitoring software, and other smart energy management solutions.
Just this week, Enphase announced the start of shipments for their new IQ8HC Microinverters with higher domestic content. These microinverters are now being manufactured in U.S. facilities, increasing their American-made components. This move aims to help customers more easily qualify for the domestic content bonus tax credit under the Inflation Reduction Act. The new products are marked with a “DOM” suffix to indicate their increased domestic content. Enphase’s CEO highlighted that this shift aligns with their focus on quality and innovation. The company believes this will benefit their customers by potentially allowing them to access additional tax credits.
Year-to-date, shares of ENPH stock have retreated by 18.22% so far. Meanwhile, during Wednesday morning’s trading session, Enphase Energy stock is trading up on the day so far by 2.38%, at $107.10 a share.
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