Solar Stocks Get New Shine

Judging from last week's First Solar conference call, analysts are satisfied with the company's plans to expand capacity dramatically in coming years to push into new markets, and its ability to push up module efficiency rates while bringing down module production costs. That's being reflected in margins: Operating income was 39% of revenue last quarter, up from 17% a year earlier.

Such is the buzz around First Solar that it's emerging as something of a bellwether for solar stocks, even though the majority of its revenue to date has come from Germany alone. Yingli Green Energy(YGE Quote - Cramer on YGE - Stock Picks) and JA Solar(JASO Quote - Cramer on JASO - Stock Picks) were among the stocks that rallied on First Solar's numbers, although they've given up most of those gains since then.

As First Solar pushes beyond Germany into the U.S. and Europe, as well as nonsubsidized contracts, it will become a more accurate barometer for its sector. But such expansion brings new risks that may not be fully priced yet into its shares.

The market remains somewhat cautious on the solar sector for now, but a few more earnings reports showing resilience and growth could return the spotlight to solar power in the coming months.

« Previous Page

1 2

Next Page »