Solar energy stocks were once the realm of alternative bargain investors. Today, they’re more than ready for the mainstream. Solar energy production is continuing to expand both in the United States and internationally. Solar technology is becoming more affordable, which makes generation more viable both for grid infrastructure and private or commercial use.
Any investor looking for exposure to the rapid growth in the solar industry can consider these two stocks for December and the new year ahead.
SunPower Corp (NASDAQ: SPWR)
SunPower is an affordable solar stock that has broken beyond the traditional bargain market into the mainstream. The stock has grown almost 400% in the year to date, reflecting both strong demand and confidence in the wider solar industry.
SunPower is a pure-play solar stock that manufactures and sells solar systems in the United States. It offers turn-key engineering services to residential and commercial customers. The company reported earnings of -$0.06 per share after the third quarter. It is gradually moving towards positive EPS, which should help to attract new investment. The most recent quarter produced an earnings surprise that was 57.14% higher than the average analyst prediction.
Full year earnings are expected to be positive in 2021 at $0.46 per share, which is then expected to increase to $0.64 per share in 2022.
SunPower’s strong penetration in the U.S. should help it to capitalize on the expected clean energy initiatives of the incoming Biden administration.
JinkoSolar Holding Co. Ltd (NYSE: JKS)
Based in China, JinkoSolar is an innovator in solar panel design and integration systems. In the third quarter of this year, the company’s solar module shipments increased by 53.8% year over year. This reflects the growing demand for solar systems. The quarterly gross margin was reported at 17%, and revenue came in 17% higher than a year ago.
These figures are important because they show how robust JinkoSolar is, despite facing the challenge of the Coronavirus Pandemic and its manufacturing interruptions this year. This stock is affordable today and with high-end estimates reaching as high as $75.00, there’s likely an upside to come in 2021.
Analysts currently predict that full year earnings will reach as high as $3.66 per share in 2021 and then $4.77 per share in 2022. Earnings momentum should help to keep this stock moving forward.
Solar is One of the Best Energy Investments for 2021
Residential and commercial installations have allowed the U.S. solar industry to grow at an average rate of 50% per year over the last ten years. The industry is continuing to expand, thanks to more affordable modules and efficient system designs. SunPower and JinkoSolar are two of the best stock options for growing portfolios.
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