The stock market might be on the cusp of a prolonged decline, especially if President Trump remains sick following his positive COVID-19 diagnosis. If Trump were to pass away in the ensuing weeks, the market would surely nosedive.
Though this might not be the best time to establish large positions in stocks, there are some companies that will continue to trend upwards, even amidst lengthy political and social uncertainty. These are solar companies that are so promising that they should buck the market trend and continue to ascend regardless of extraneous factors.
Letâ€™s take a look at four solar stocks likely to maintain bull runs regardless of the state of a seemingly uncertain economy, government, and overarching society amidst the pandemic: SolarEdge Technologies (SEDG), Enphase Energy (ENPH), Sunrun (RUN), and Vivint Solar (VSLR).
SolarEdge TechnologiesÂ (SEDG)
Solar stocks have been blazing hot in recent months. However, selecting the cream of the crop is challenging, considering the sheer number of publicly-traded solar companies. SEDG appears to have a particularly bright future. SEDG offers inverter solutions, power optimizers, and a high-tech monitoring platform that functions with the cloud. SEDG provides residential solar installations as well as solar installations for commercial enterprises.
This renewable energy powerhouse has operations throughout the United States and Europe, providing affordable solar solutions to both companies and individuals. The companyâ€™s revenue has soared an average of 45% each year since 2015.
SEDG has â€śAâ€ť grades in the Buy & Hold and Trade components of theÂ POWR Ratings, a â€śBâ€ť for Industry Rank, and a top-ranking in theÂ SolarÂ industry. Though SEDG is only a couple dollars away from its 52-week high of $265.42, it just might blast right on past this benchmark and continue to ascend.
Enphase EnergyÂ (ENPH)
Another solar industry superstar, ENPH, creates and sells solar solutions for residences. These solutions connect the generation, storage, and control of energy through a single, smart platform. The companyâ€™s primary products are microinverters. ENPH ships more than a couple million microinverters every year. Furthermore, ENPHâ€™s solar systems have been deployed in more than 130 countries.
ENPH POWR Ratings are nearly perfect: â€śAâ€ť grades in Trade Grade and Buy & Hold Grade and â€śBâ€ť grades in the remaining components. ENPH is ranked in the top two out of 14 businesses in the Solar industry Of theÂ 15 analysts who have studied ENPH, nine insist it is a â€śBuyâ€ť, six advise holding, and none advise selling.
J.P. Morgan analysts recently increased their ENPH price target by $12, thinking it will reach the low $90s within a year. It is clear the companyâ€™s microinverter business has serious potential for residential homeowners across the world, as evidenced by its sales doubling to more than $600 million last year. ENPH is now profitable, setting the stage for a bull run.
RUN provides solar services in the form of direct channels to consumers and mounting structures with its SnapNrack brand. RUN, a San Francisco-based company, operates in more than 15 states.
RUN has an â€śAâ€ť Trade Grade in the POWR Ratings and â€śBâ€ť grades in the remaining components. Furthermore, RUN is ranked in the top half of solar stocks.
Though RUN has had quite the epic bull run in recent months, it is still priced more than $5 below its 52-week high of $82.42. RUNâ€™s power storage solutions prove particularly helpful to those devastated by wildfires and other natural disasters.
Vivint SolarÂ (VSLR)
As time progresses and the planet warms, many more homes will rely on solar energy systems, many of which will be provided by the likes of VSLR. VSLR makes, installs, and maintains such systems. VSLR also offers photovoltaic installation devices and software.
VSLRâ€™s POWR Ratings are nearly perfect, highlighted by â€śAâ€ť grades in the Peer Grade and Trade Grade components. Out of nearly 15 stocks in the Solar industry, VSLR is ranked third.
VSLRâ€™s forward P/E ratio is more than 3,150. If the stock dips in the days or weeks to come, it may offer an opportunity for investors who have been waiting on the sidelines to consider establishing a position.
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SEDG shares rose $1.01 (+0.37%) in premarket trading Tuesday. Year-to-date, SEDG has gained 189.20%, versus a 7.11% rise in the benchmark S&P 500 index during the same period.
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More…