This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Investing In Solar: Are These Solar Stocks Feeling The Heat Yet?

Chris Lau, Kapitall: Solar stocks rise and fall with the markets. But can investing in solar add a little shine to your portfolio?

Given the massive ups and downs in solar energy stocks over the last few years, it is hard for investors to believe things may be different this time. The solar energy sector previously looked to be in an unsustainable bubble.

[Read more from Kapitall about investing in solar: Should Value Investors Warm Up to These Solar Stocks?]

But generous and abundant subsidies, high demand, and high margins invited firms to supply more. When prices dropped for solar panels, weak players filed for bankruptcy and the lower supply helped stabilize the industry.

In the US, solar power generation is becoming a more significant source of energy. Coal and natural gas sources now need to compete with solar power, which may help explain why utility stocks are poor performers this year.

Investing ideas

SolarCity ( SCTY ) is on a tear. Shares rose 25% on the week, closing recently at $47.18 and not far from a high of $52.77 reached in May of this year. The company’s latest forecast is only slightly better than previous expectations, so should investors be considering SolarCity now or waiting for a pullback?

Only Trina Solar ( TSL ) is outshining SolarCity in the short-term. In the one year period, Trina and SolarCity are up more than two-fold:

Click on the interactive chart to see data over time.

Trina may be up because the Chinese government is giving a 50% value-added tax rebate to solar manufacturers for the next two years. China is also imposing a tariff of just 6.5% for most of the polysilicon suppliers coming from the US.

The lighter tariff suggests that trade between the US and China will not be hurt as badly as previously thought.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs