On May 9, 2013, the shares of
) climbed to its 52-week high of $16.92 primarily driven by
robust performance in first-quarter 2013. On a year-over-year
basis, the company's top and bottom line increased significantly
due to high efficiency solar panels and strong performance from
both rooftop and ground mount teams.
Globally, utilization of renewable energy is rising primarily due
to its clean nature and a growing awareness among the masses
regarding its benefits. These influence utility providers to
shift their mode of power generation to solar, wind and water.
SunPower Corporation is continuously receiving orders from
domestic and international clients for solar modules and other
allied services. The company has already begun construction of
the 579-megawatt Antelope Valley Solar Projects for MidAmerican
Solar. SunPower Corporation has almost completed the construction
of the California Valley Solar Ranch project, owned by
NRG Energy, Inc.
It is evident from SunPower Corporation's activities that it is
currently in an expansion mode. The company manufactures its
solar cells and solar panels at its factories in the Philippines,
a low-cost production region, and is building another facility in
Mexico. This gives the company a distinctive cost advantage over
its U.S.-based manufacturing peers. These initiatives will enable
SunPower Corporation to improve its future margin.
We believe SunPower Corporation's strong project backlog,
continued growth in residential lease and global focus on
improving its cost structure, will enable it to achieve its
However, we are apprehensive about the rising competition, glut
of solar panels in the market and lower average selling prices.
SunPower Corporation currently has a Zacks Rank #3 (Hold). Stocks
worth considering in the alternative energy space are
STR Holdings, Inc.
), both with a Zacks Rank #2 (Buy).
NRG ENERGY INC (NRG): Free Stock Analysis
RENESOLA LT-ADR (SOL): Free Stock Analysis
SUNPOWER CORP-A (SPWR): Free Stock Analysis
STR HOLDINGS (STRI): Free Stock Analysis
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