Solar Stocks Rally, Led By Sunrun, SolarEdge, Enphase

Solar stocks are racking up a strong day in trading, with several of the renewable-energy firms up by double-digits in Wednesday trading. The strong day is helping some companies make up ground after an extended rough run.

X

The Invesco Solar ETF (TAN) was trading nearly 5% higher in recent action on the stock market today, putting the solar-focused fund on track for its best trading day in more than a month, according to MarketSurge data.

Leaders from the sector on the day include Sunrun (RUN), with the residential solar company up 15% at 12.93 in recent action. Solar panel inverter maker SolarEdge (SEDG) is up 9% at 69.17. Meanwhile, Enphase Energy (ENPH), a competitor to SolarEdge, is up 8% at 118.30 in recent action.

Solar stocks have struggled over the past year, with IBD’s solar energy group ranking near the bottom of the 197 industry categories tracked by Investor’s Business Daily. Meanwhile, the Invesco Solar ETF is down nearly 40% over the past 12 months. Rising interest rates and inflation, among other factors, have made projects more difficult to finance and have cut into earnings.

Solar Stocks Down Overall In 2024

In recent weeks, solar stocks have jumped on positive news about inflation or general confidence about future rate cuts. But gains have not been consistent. The Invesco Solar ETF is down about 13% year to date, even with Wednesday’s gains. Coming off an even worse performance in 2023, some investors are looking for a bottom for solar stocks.

There was other solar news Wednesday. Starting April 1, Sunrun will be moved from the S&P MidCap 400 to the S&P SmallCap 600, the S&P Dow Jones Indices announced late Tuesday. Roivant Sciences (ROIV) is replacing Sunrun in the midcap index, while Sunrun will replace PGT Innovations (PGTI) in the small-cap index. PGT Innovations will be acquired, the S&P announcement said.

Meanwhile, analysts at Mizuho on Wednesday reiterated a buy rating for SolarEdge stock. The client note followed a meeting with SolarEdge officials. Mizuho also reiterated a price target of 106 for SolarEdge stock.

“We…

..

Read More

Recommended For You

About the Author: nftstocks

Leave a Reply

Your email address will not be published. Required fields are marked *