Whenever the talk is about electricity and energy efficiency, solar power usually comes up as a viable alternative to fossil fuels. But solar energy has been slow to adopt by many due to its high price and lack of understanding. The United States government has tried to step in with rebates and tax credits to help jumpstart the solar industry to no avail. Regardless of this, there are solar stocks worth investing your money in.
You might be wondering why this is so, given the information I just presented. The reason is that we are on the cusp of a shift in the industry. Thanks to rapid technological advances, solar energy is quickly becoming cheaper and more efficient. It is just a matter of time until more and more people jump on the wagon and start taking advantage of solar energy.
With a handful of solar stocks out there, I narrowed the list down to 3 that I feel have a solid future and can make you some money both in the short and long term. Just understand that since this market is still developing, there will be a large degree of volatility. But with estimates that the solar industry could be worth trillions of dollars, the sky is the limit for these solar stocks.
3 Solar Stocks With A Bright Future
#1. SunPower (Nasdaq: SPWR)
SunPower is the most efficient maker of solar panels out there. Their problem? The cost of their panels are higher than the competition, and with more and more lower priced panels coming from China, the price gap is only widening.
The solution then for SunPower is to reduce costs. And that is exactly what they are working on. They invested heavily in new technology with the goal of driving down production costs. As a result of this investment, earnings took a hit in 2016.
The dust still hasn’t settled on this yet with recent earnings per share coming in at a loss of $0.35. However they did beat estimates by $0.09. Revenues came in at $341 million, down 15% from the previous year. But again, they beat guidance by $29 million.
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