The Best Stocks In The Surging Solar Industry

The Zacks Industry Rank assigns a rating to each of the 265 industries based on their average Zacks Rank. An Industry with a larger percentage of Zacks Rank #1s (Strong Buy) and #2s (Buy) will have a better Zacks Industry Rank than one with a larger percentage of Zacks Rank #4s (Sell) and #5s (Strong Sell).

Finding the best industries is often the key to success in investing. Our research shows that the industries ranked in the top half outperform those in the bottom half by a factor of two to one, so putting your money to work in the best industries gives you a big advantage.

One industry that should be on your radar right now is solar. That is because the segment is coming into focus thanks to a greater desire for more environmentally friendly energy sources, and plans for additional spending on renewables.

The United Nations Environment Programme (UNEP) recently reported that 2015 was a record year for investments in renewable energy.  Over the year, $286 billion was invested in cleaner energy resources.

With this trend, a look to the solar industry may be a good idea for your portfolio.  Stocks within the solar space sit in the top 7% of all industries of all 265 industries ranked on the Zacks Industry Rank. Right now, the Solar industry is ranked as the 17th best industry out of the 265 industries covered by Zacks.  In the last week, the industry has seen its average Zacks Rank improve, going from an average Zacks Rank of 2.53 to a rank of 2.47.  

Best of the Group

There are several promising choices in the solar industry right now, such as SolarEdge Technologies (SEDG – Snapshot Report), JinkoSolar Holding (JKS –Snapshot Report), and SunPower Corporation (SPWR – Analyst Report), all of which have either a #1 (Strong Buy) or #2 (Buy) on the Zacks Rank.