Solar stocks could see brighter days ahead.
For one, they’re some of the many “green” stocks riding the $370 billion clean energy.
In fact, “The Inflation Reduction Act of 2022 invests in the technologies needed for all fuel types – from hydrogen, nuclear, renewables, fossil fuels and energy storage – to be produced and used in the cleanest way possible. It is truly all of the above, which means this bill does not arbitrarily shut off our abundant fossil fuels. It invests heavily in technologies to help us reduce our domestic methane and carbon emissions and also helps decarbonize around the world as we displace dirtier products.”
Two, solar stocks, like Canadian Solar (CSIQ) are producing solid earnings and guidance.
For its second quarter, the company saw sales growth of 62% to $2.31 billion. That was higher than expectations for $2.23 billion. EPS of $1.07 was also higher than expectations for 33 cents. Then, the company hiked its 2022 sales forecast to $7.5 billion to $8 billion, which is higher than the initial forecast for a range of $7 billion to $7.5 billion.
Three, most solar stocks have been doing well. We can see that with the Invesco Solar ETF (TAN), which ran from a May 2022 low of about $57 to $88 a share. With an expense ratio of 0.66%, some the fund’s top holdings include Enphase Energy, SolarEdge, First Solar, Sunrun Inc., SunPower Corp., and Canadian Solar to name a few.
In short, now may be the best time to invest in solar.
