There’s perhaps never been a more opportune moment to embrace solar stocks to buy than now. Even the International Energy Agency projects a fourfold jump in the annual rate of solar panel installations by 2030. Moreover, within the global impetus towards greener alternatives lies a spectrum of high-return solar investments. Solar power basks in the glory of technological advancements that have drastically slashed costs, from panels to installations and maintenance.
Fueled by these dynamics, solar stocks to buy are set to light up investment portfolios. The appeal of solar stocks to buy lies in the projected top and bottom-line growth. That, and its ability to ride the revolutionary shift towards a greener, cleaner future. Today, let’s focus on the best high-potential solar stocks for a radiant investment future.
Solar Stocks to Buy: First Solar (FSLR)
First Solar (NASDAQ:FSLR) is a top U.S. solar panel manufacturer that continues to rise in its niche. According to Goldman Sachs (NYSE:GS), catalysts are emerging from factory expansions to meet growing demand. On top of that, a surge in interest from American utilities is another major catalyst. That’s thanks to the Treasury Department’s clarifications on domestic sourcing requirements for tax breaks.
As per 2023 guidelines, First Solar anticipates net sales ranging between $3.4 billion and $3.6 billion and earnings per share diluted share of $7 to $8. Bolstered by a billion-dollar revolving credit facility, and a massive cash position of $2.28 billion, First Solar’s future looks remarkably bright.
JinkoSolar (NYSE:JKS) has become a photovoltaic product design and development leader. In the first quarter of 2023, the firm posted stunning earnings per share growth, outshining consensus expectations by more than 352%. Its climb to the top is underscored by achieving its highest global module market share, a testament to JinkoSolar’s industry dominance.
Even with such compelling performance, the market seems to overlook JKS’s long-term potential. The company secured the largest market share globally regarding module shipments, generating 95% of its sales flowing from module sales; JKS stands as a robust pure-play integrated PV module manufacturer with a powerful growth and profitability profile.
Maxeon Solar (MAXN)
Maxeon Solar (NASDAQ:MAXN), a prominent solar module producer based in China, is carving out its unique niche in the solar market. Moreover, the French oil titan’s 34.6% stake in Total boosts the firm’s potential to fulfill a sizeable chunk of the European Union’s solar panel needs.
Additionally, its recent financial performance has been incredibly sunny. Its top line saw an impressive 43% year-over-year leap in the prior quarter, making U.S. investors increasingly optimistic about this Chinese solar giant. However, concerns about the Chinese economy and U.S. residential solar prospects, given California’s trimmed payments for rooftop-generated electricity, have cast a gloomy shadow over the share price.
Yet, Maxeon’s panels hold a competitive edge bolstering installer profits and providing long-term savings to its growing customer base. Given its significant exposure to Europe’s fast-expanding solar sector, the future looks remarkably bright for Maxeon.
Array Technologies (ARRY)
Array Technologies (NASDAQ:ARRY) headquartered in New Mexico, is a globally recognized technology firm offering robust tracker solutions and services for utility-scale solar energy projects. It is the world’s largest manufacturer of ground-mounted systems, and its technological prowess positions it as a potential millionaire-maker stock in the solar space.
However, Array’s financial landscape offers a mixed bag of fortunes. Plenty needs to be done concerning its balance sheet and lackluster profitability metrics. In a more promising vein, ARRY stock rides on the back of powerful sales growth in recent years, a trend that, if continued, could offer a prosperous long-term investment opportunity.
Capping off the first quarter with a robust 25% surge in revenue, Array sparks intrigue among long-term investors. While the road might not always be smooth, Array’s growth trajectory has been mighty impressive, with year-over-year sales growth at an astounding 89%, more than 100% higher than its 5-year average.
SolarEdge Technologies (SEDG)
SolarEdge (NASDAQ:SEDG) dominates the solar inverter market, with its technology playing a critical role in converting sunlight into usable electricity. With a market share of roughly 40% of the U.S. microinverter market, SolarEdge continues to impress by effectively outpacing analysts’ earnings predictions. Goldman Sachs brushed off concerns regarding its EU performance, confirming the firm’s thriving momentum in the region.
In a testament to its growth, SolarEdge posted a sizeable 44% sales hike in the first quarter. All of which helped catapult its revenue to a whopping $943.9 million. Particularly impressive is the solar sales’ contribution, a staggering $908 million of the total revenue, representing almost a 50% surge year-over-year. Coupled with a net income increase from $33 million to $138 million, the company demonstrates robust maturation and income generation.
SolarEdge basks in the glory of its expanding global footprint. Moreover, increased solar demand across nations such as Germany, South Africa, Australia, France, Switzerland, and Austria underpins the firm’s potential growth, making SolarEdge a promising contender in global solar adoption.
Enphase Energy (ENPH)
With a firm grip on the renewable energy sector, Enphase Energy (NASDAQ:ENPH) has effectively marked its territory across energy storage, solar microinverters, and EV charging segments. Its incredible first quarter saw the firm’s sales climb to an impressive $726 million, bolstered by a robust 25% revenue boost in Europe. The momentum didn’t stop there, with its net income catapulting to $147 million, doubling the previous year’s $52 million. This positive trend will persist, resulting in promising long-term second-quarter results.
Diversifying its reach, Enphase Energy is strategically tapping into the ever-expanding EV sector. Given the steadily rising demand for chargers, the firm’s residential Level 2 and 3 chargers have lucrative potential. However, recent jitters in the stock price due to concerns over a slowdown in residential solar demand present a temporary blip. Additionally, with a beta value of around 1.5, I foresee the stock generating above-average returns as market conditions rebound.
SunPower (NASDAQ:SPWR) may be a small player in the clean energy arena, but its impressive trajectory promises tantalizing prospects. A testament to its growth is its sizeable 21,000 customer base expansion reported during the first quarter, with a year-on-year growth rate hitting 27%. SunPower is showcasing its strength as a pure-play power company in a competitive market.
Adding more feathers to its cap, SunPower is joining forces with the privately-held OhmConnect, primarily in California. This alliance enables SunPower customers to dispatch excess energy during peak demand, thus contributing to grid stability. On top of that, SunPower continues making strategic inroads into the Midwest through a partnership with Wolf River Electric. This move not only amplifies its reach but also fuels its growth potential.
SunPower’s impressive growth and strategic positioning make it a contender with bright prospects. Its expanding customer base, sales, or geographic footprint will likely outshine larger competitors.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines