As autumn leaves give the ground a rustic makeover, astute investors might also consider revamping their financial portfolios. In that context, let’s talk solar—the ever-buzzing energy segment that just can’t be ignored anymore. This has led to the rise of solar stocks to buy.
While solar stocks have experienced ups and downs, it’s clear they’re paving the way for the future, even if they’re already making an impact today. Don’t worry about navigating the overwhelming array of choices to find top-performing solar stocks; we’ve done the hard work for you.
In this illuminating read, we spotlight three top solar stocks that combine groundbreaking technology, fiscal agility, and a clear vision for the path ahead. Whether you’re a seasoned investor or just getting your feet wet, these stocks merit your full attention this season. Navigate through this narrative to uncover valuable insights and make an informed decision.
First Solar (FSLR)
First Solar (NASDAQ:FSLR) is making substantial strides in the competitive landscape of top solar stocks. The company has attracted investor attention with a year-to-date return of almost 14%. The second quarter financials for 2023 were nothing short of exceptional; it reported a revenue of $810.7 million, up 31% year-over-year. But what truly astounds is the net income—$170.6 million—marking an extraordinary 206% increase compared to the previous year. Furthermore, First Solar didn’t just meet earnings per share expectations; it shattered them. Anticipated to post an EPS of $0.96, the company reported an impressive $1.89, beating estimates by 97%. This robust performance amplifies First Solar’s position as one of the best solar stocks in the market.
However, it’s not just the financial metrics that are turning heads. On the operational front, First Solar has been equally dynamic. It recently broke ground on a 1.1 billion-dollar panel factory in Louisiana, underlining its commitment to expanding its American manufacturing base. First Solar’s management has also been vociferous about wanting the U.S. to adopt a stringent stance on trade. The company has secured an additional two-gigawatt solar panel order from Longroad Energy, underscoring the growing demand for its products. Although it faced some reputational setbacks after an audit discovered forced labor in its Malaysian factory, the firm swiftly moved towards damage control. It’s worth noting that First Solar has garnered upgrades from Deutsche Bank and Morgan Stanley, offering a more optimistic outlook despite SolarEdge’s weak guidance dragging down the sector.
To sum it up, First Solar is not merely getting by in the dynamic solar sector; it’s flourishing. The “Made in America” ethos gives it a distinct market edge. As both its revenue and net income are on the rise, the company seems well-positioned for ongoing expansion.
Enphase Energy (ENPH)
In the volatile world of solar stocks, Enphase Energy (NASDAQ:ENPH) stands as an enigmatic player. Despite a harsh year-to-date tumble of 51%, the company’s recent financials paint a more nuanced picture. Imagine this: net income skyrocketed by an impressive 104% to $157.2 million. Meanwhile, revenue ramped up by 34%, hitting $711.1 million on the dot. And let’s talk about that earnings per share. Enphase didn’t just meet expectations; it blew them out of the water with a surprise 16% boost.
So, what gives? On the one hand, headlines scream about inventory issues and growing pains. But wait, there’s more. Enphase is in rapid expansion mode and it’s not looking back. The company scored a glowing upgrade at Seaport, thanks to strong performances in Europe and a promising rebound in the U.S. Oh, and someone upstairs clearly believes in Enphase’s story—the director recently invested a cool $4 million in company shares. That’s not pocket change; that’s a bullish statement. Internationally, the company is flexing its muscles too. It’s deepening its roots in Australia and extending its innovative IQ8 microinverter deployments to South Carolina.
The nitty-gritty is this: Enphase’s net profit margin sits at a healthy 22%, signaling robust operational efficiency. So, for keeping score, Enphase isn’t your run-of-the-mill solar stock; it’s an undervalued gem hiding in plain sight. With all its strategic maneuvers and financial stamina, this company has poised itself as a contender among the best solar stocks. For savvy investors who understand the timeless wisdom of “being greedy when others are fearful,” now may be the golden moment to consider Enphase. With its robust earnings, expansion fever, and top-tier management decisions, this stock might be the phoenix preparing to rise from its ashes.
SolarEdge Technologies (SEDG)
SolarEdge Technologies (NASDAQ:SEDG), the solar maestro that’s been jamming to a different tune this year, is now basking in strong support territory. Don’t let that 52% year-to-date dip fool you; the company is anything but a sinking ship. The financial fireworks are dazzling: a 36% revenue surge to $991.3 million and an absolutely staggering 692% net income spike to $119.5 million. Missed revenue targets by a mere 0.46%? Pish-posh. SolarEdge smashed the earnings per share expectations by 2.18%, delivering a cool $2.62.
Now, cue the dramatic music: Inventory hiccups and cloudy demand forecasts have cast shadows, making some Wall Street players skittish. Yet, SolarEdge isn’t just sitting pretty; it’s prepping for a grand act. The company is holding the line on inverter prices as solar panels get cheaper—a masterstroke aimed at plumping those margins. Bank of America (NYSE:BAC) may have labeled it Neutral. But let’s face it: when it comes to top solar stocks, SolarEdge has the moxie and the metrics to outshine. So, savvy investors, if you’ve been on the fence, now might be the time to make your move. SolarEdge looks like an underpriced gem with luminous potential in the high-voltage solar world.
On the publication date, Faizan Farooque did not hold (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.