Solar companies have increased power to energize your portfolio, Jim Cramer said during a recent episode of his Mad Money show.
Cramer recommended four solar stocks, including Tesla (TSLA) - Get Report. Tesla CEO Elon Musk has been involved this week in a civil action with some of Tesla’s shareholders over the bailout of SolarCity in 2016.
Tesla was among very few winners in Monday's selloff, closing up 0.31% to $646.22; shares are up nearly 3.7% over the past month.
The Dow Jones Industrial Average on Monday posted its worst day of 2021 and stocks finished broadly and sharply lower as investors moved into safe-haven assets and weighed how rising COVID-19 cases might affect the economic recovery in the U.S. and globally. The Dow industrials finished down 725 points, or 2.09%, at 33,962, the S&P 500 dropped 1.59% and the Nasdaq slumped 1.06%.
At their lowest levels on Monday, the Dow blue chips slumped 946 points, or 2.7%, the S&P 500 gave back 2.2% and the Nasdaq fell 1.7%.
Bonds rallied, pushing the yield on the benchmark 10-year Treasury down Monday to 1.19%, the lowest in five months.
In addition to picking Tesla as a leader in solar, Cramer recommended three other firms.
He said pressure on companies to address climate change, combined with the nation’s aging electrical grid causing more and more power outages, makes solar stocks appealing.
First on Cramer's list was First Solar (FSLR) - Get Report, which has avoided tariffs by making its proprietary panels in the U.S. With the company's 2021 production sold out, along with most of its 2022 production, Cramer said First Solar is a buy, even trading at 21 times earnings. First Solar shares bottomed when the pandemic hit in March 2020. It has been up and down since, with the stock up recently but still off its January 2021 peak.
Read more of Cramer's solar winners, including Generac Holdings (GNRC) - Get Report, has risen steadily since 2020 and hit historic highs in the past week, and Enphase (ENPH) - Get Report, over on Real Money.