Solar stocks have grown in popularity in recent years, as interest in environmental, social, and governance (ESG) investing has grown, but the stocks have proven unimpressive. That’s likely the consequence of supply chain concerns and present political volatility, which includes uncertainty over the U.S. energy policy.
However, given public awareness of climate change, the setback might only be temporary. Furthermore, corporate investment may further boost the prospects for solar stocks in the United States.
Two top solar stocks are Enphase Energy and Renesola. Both of these stocks have received a Strong Buy rating from analysts. Let’s take a look at what makes these stocks so appealing.
Enphase Energy (ENPH)
Enphase Energy is a global provider of energy management technology solutions for the solar photovoltaic sector. The company’s revenues and cash flow from operations have steadily risen over time. Enphase Energy’s revenue grew 97% year-over-year in the third quarter.
In addition, the company is focusing on acquisitions to drive its growth. It recently bought ClipperCreek, a developer of electric vehicle (EV) chargers, to diversify its portfolio. It’s also an intriguing stock due to the company’s continual efforts to expand its product line.
Despite the fact that the price of ENPH stock has dropped by 31% in the last year, investors have retained a bullish perspective on the firm. According to TipRanks’ Stock Investors tool, about 2.6% of investors holding portfolios on TipRanks have bought Enphase Energy shares in the last 30 days.
Furthermore, experts are bullish on this company: sixteen analysts have given it a Buy recommendation in the last three months, only three have given it a Hold rating, and none have given it a Sell rating. The average Enphase price target is $249.21, which represents a considerable upside of 103.2%.
As a result, the current position may provide an excellent chance to buy the dip.
Notably, the company will release its fourth-quarter upcoming earnings on February 8. The earnings picture will give investors a better understanding of the company’s fundamentals and growth strategy.
Renesola (SOL)
Connecticut-based ReneSola is a solar project developer and operator with a strong pipeline of projects throughout the world. ReneSola’s biggest and most profitable market is still the United States.
In the most recently reported quarter, Q3, ReneSola revenues increased 59% year-over-year. The revenue increase was related to the sale of solar projects in the United States and Poland, according to the business.
In addition, the corporation is aggressively extending its operations in overseas markets. The company’s projects are also being developed in Florida, Pennsylvania, Illinois, and California.
Furthermore, analysts are bullish on this company, with three Buy recommendations. The stock is now trading at $5.29, with an average SOL price target of $12.50, representing a 136.3% year-over-year gain.
Renesola might be a smart investment for investors, given its significant upside potential.
Download the TipRanks mobile app now.
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure
