Solar Stocks To Buy: List Of All The Best To Invest In 2023

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Solar Stocks To Buy – Solar energy is one of the fastest-growing sources of renewable power in the world. According to the International Energy Agency (IEA), solar photovoltaic (PV) capacity increased by 22% in 2022, reaching 714 gigawatts (GW) globally. The IEA expects solar PV to become the largest source of electricity generation by 2030, surpassing coal and gas.

Investing in solar energy stocks can be a way to profit from this green energy revolution. However, not all solar stocks are created equal. Some may offer higher growth potential, while others may provide more stability and dividends.

In this article, we will look at some of the best solar stocks to buy now, based on their market position, financial performance, and future outlook.

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First Solar (FSLR)

First Solar is one of the leading manufacturers of thin-film solar panels, which use less material and are more efficient than conventional crystalline silicon panels. The company has a strong presence in the U.S., Japan, Europe, and Australia, where it sells its modules to utility-scale and commercial customers. First Solar also develops and operates solar power plants, with a portfolio of 12 GW under contract.

First Solar has a market capitalization of $20.5 billion and a price-to-sales ratio of 7.3. The company reported revenue of $2.7 billion and earnings per share (EPS) of $0.40 for 2022, down from $3 billion and $1.48 in 2021, respectively. The decline was mainly due to lower module sales volumes and prices, as well as higher costs related to the transition to its new Series 6 technology.

However, First Solar expects to grow its revenue to $3.8-$4 billion and its EPS to $4-$4.50 for 2023, driven by higher module shipments and margins. The company also has a strong balance sheet, with $1.8 billion in cash and no debt as of December 31, 2022. First Solar pays a quarterly dividend of $0.20 per share, yielding 0.6%.

First Solar is well-positioned to benefit from the increasing demand for solar energy, especially in the U.S., where it has a competitive advantage over its Chinese rivals due to its domestic manufacturing and exemption from import tariffs. The company also has a robust pipeline of projects and a differentiated technology that can lower costs and increase the reliability of solar power.

Brookfield Renewable (BEP)

Brookfield Renewable is one of the largest owners and operators of renewable power assets in the world. The company has a diversified portfolio of hydroelectric, wind, solar, and storage facilities across North America, South America, Europe, and Asia, with a total capacity of 21 GW.

Brookfield Renewable has a market capitalization of $16 billion and a price-to-sales ratio of 10. The company reported revenue of $3 billion and EPS of $0.26 for 2022, up from $2.8 billion and -$0.01 in 2021, respectively. The growth was mainly driven by higher generation volumes and prices, as well as acquisitions and organic expansions.

Brookfield Renewable expects to grow its funds from operations (FFO) by 6%-11% annually over the long term, supported by its contracted cash flows, operational improvements, and development pipeline. The company also aims to increase its dividend by 5%-9% per year, offering a current yield of 3%.

Brookfield Renewable is an attractive investment for income-oriented investors who want exposure to the renewable energy sector. The company has a proven track record of delivering stable and growing returns, backed by its high-quality assets, diversified portfolio, and strong financial position.

SolarEdge Technologies (SEDG)

SolarEdge Technologies is a leading provider of smart energy solutions for residential and commercial solar installations. The company’s products include power optimizers, inverters, monitoring systems, and battery storage solutions that optimize the performance and efficiency of solar panels.

SolarEdge Technologies has a market capitalization of $16.1 billion and a price-to-sales ratio of 4.9. The company reported revenue of $1.5 billion and EPS of $3.40 for 2022, up from $1.4 billion and $2.69 in 2021, respectively. The growth was mainly driven by higher shipments of its products across all regions and segments.

SolarEdge Technologies expects to grow its revenue to $1.8-$1.9 billion and its EPS to $4-$4.50 for 2023, driven by strong demand for its products and services, as well as new product launches and geographic expansions. The company also has a solid balance sheet, with $1.1 billion in cash and $300 million in debt as of December 31, 2022.

SolarEdge Technologies is a leader in the fast-growing market for smart energy solutions, which enable solar system owners to optimize their energy production, consumption, and storage. The company has a loyal customer base, strong brand recognition, and a competitive edge in innovation and quality.

In conclusion, Solar energy is a promising and profitable sector for investors who want to capitalize on the green energy revolution. However, not all solar stocks are the same. Investors should look for companies that have a strong market position, financial performance, and future outlook. Based on these criteria, we have selected three solar stocks that stand out as the best ones to buy now: First Solar, Brookfield Renewable, and SolarEdge Technologies. These companies offer a combination of growth potential, stability, and dividends that can reward investors in the long run.

Frequently Asked Questions (F&Qs)

What is the best solar stock right now?

The best solar stock right now is a matter of opinion, but some of the most popular and well-performing solar stocks include:

  • First Solar (FSLR)
  • SolarEdge Technologies (SEDG)
  • Enphase Energy (ENPH)
  • Sunrun (RUN)
  • Canadian Solar (CSIQ)

Is solar a good investment?

Yes, Solar energy is widely considered one of the most exciting and viable alternatives to fossil fuels. Solar investing encompasses investments in various aspects of the solar energy supply chain. Perhaps you invest in companies that produce large-scale solar panels or smaller solar products for homes.

Why are solar stocks so low?

here are a few reasons why solar stocks are so low. These include:

  • Rising interest rates. Rising interest rates make solar projects more expensive to finance, which can dampen demand for solar panels and other solar equipment.
  • Falling commodity prices. The prices of solar panels and other solar equipment have been falling in recent years. This has made it more difficult for solar companies to make a profit, and it has also led to lower valuations for solar stocks.
  • Uncertainty about the future of solar subsidies. The U.S. government has provided significant subsidies for solar energy in recent years. However, the future of these subsidies is uncertain, which has created uncertainty for solar companies and investors.
  • Competition from other renewable energy sources. The cost of solar energy has been falling in recent years, but the cost of other renewable energy sources, such as wind and hydropower, has also been falling. This has made it more difficult for solar companies to compete, and it has also led to lower valuations for solar stocks.

What’s the price of solar stock?

The price of solar stocks can fluctuate significantly, so it is important to check the latest prices before you invest. Here are some of the most popular solar stocks and their current prices (as of July 2, 2023):

  • First Solar (FSLR): $190.09
  • SolarEdge Technologies (SEDG): $229.95
  • SunPower (SPWR): $34.21
  • Enphase Energy (ENPH): $175.46
  • Sunnova Energy International (NOVA): $35.65

How high will first solar stock go?

According to TipRanks, the average price target for First Solar stock is $223.24. This represents a potential upside of 15.77% from the current price of $190.09. However, it is important to note that these price targets are just estimates, and the actual price of First Solar stock could go higher or lower in the future.

There are a number of factors that could contribute to the growth of the company and its stock price. These factors include:

  • The growth of the solar industry: The solar industry is expected to grow significantly in the coming years, as more and more people and businesses switch to solar energy. This growth could benefit First Solar, as the company is a leading manufacturer of solar panels.
  • The company’s technology: First Solar has a strong track record of innovation, and the company is constantly developing new solar panel technologies. This could give First Solar a competitive advantage in the solar industry and could lead to higher demand for its products.
  • The company’s financial performance: First Solar has been profitable for several years, and the company has a strong balance sheet. This financial strength could give First Solar the ability to invest in growth and could also make the company an attractive investment for investors.

Why buy First Solar stock?

There are a few reasons why you might want to buy First Solar stock:

  • The growth of the solar industry: The solar industry is expected to grow significantly in the coming years, as more and more people and businesses switch to solar energy. This growth could benefit First Solar, as the company is a leading manufacturer of solar panels.
  • The company’s technology: First Solar has a strong track record of innovation, and the company is constantly developing new solar panel technologies. This could give First Solar a competitive advantage in the solar industry and could lead to higher demand for its products.
  • The company’s financial performance: First Solar has been profitable for several years, and the company has a strong balance sheet. This financial strength could give First Solar the ability to invest in growth and could also make the company an attractive investment for investors.
  • The company’s valuation: First Solar stock is currently trading at a relatively low valuation compared to other solar stocks. This could be an opportunity to buy the stock at a discount.