NEW YORK (TheStreet) -- SunEdison (SUNE) stock is tumbling by 6.67% to $2.45 in late-morning trading on Wednesday, following the release of rival renewable energy company SolarCity's (SCTY) financial results.
After yesterday's market close, SolarCity reported a fourth quarter loss and issued 2016 first quarter guidance below analysts' expectations.
SolarCity anticipates a 2016 fourth quarter loss between $2.55 per share and $2.65 per share, wider than analysts' estimates for a loss of $2.36 per share.
"The only way these guys make money is tax credits," TheStreet's Jim Cramer said on CNBC's Squawk on the Street this morning. However, the political regime under Donald Trump, the front-runner for the Republican presidential nomination, is unlikely to support the tax credits.
Should Trump become president, investors will likely want to stay away from shares of renewable energy companies, Cramer continued.
Based in Maryland Heights, MO, SunEdison is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets, and a developer and manufacturer of silicon wafers.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
SunEdison's weaknesses can be seen in multiple areas, such as its generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: SUNE
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.SUNE data by YCharts