Top Solar Energy Stocks To Watch Right Now? 3 For Your List

Solar energy stocks are among the stocks trading higher this week in the stock market. This would put them in the sights of investors dealing with the question of “what stocks to buy today”. When it comes to answering this, most would be looking for the best value stocks or most undervalued stocks. As such, some would argue that solar energy stocks are viable plays on these terms.

For starters, many solar energy players flourished throughout 2020. In 2021, however, the industry shed some of its gains as the reopening trade gained momentum. Now, with the rotation back towards growth sectors, investors may find solar stocks to be trading at more attractive prices. At the same time, the growth potential of the industry continues to increase, even now. Just last week, Jon Ossoff, the Democratic Senator of Georgia, introduced new solar energy-focused legislation. In detail, the bill would see manufacturers throughout the solar energy supply chain receive tax credits. Accordingly, this could serve to further accelerate the nationwide transition towards clean energy while bolstering solar manufacturing capacities industry-wide. Simply put, we now have legislative tailwinds and more reasonable valuations in the sector.

By and large, I could see investors looking for the top solar energy stocks to invest in now. Well, there are plenty of hot options to choose from in the stock market today. For instance, we could look at the likes of Connecticut-based solar energy services company, ReneSola (NYSE: SOL). SOL stock is currently looking at massive gains of over 740% in the past year. Elsewhere, First Solar (NASDAQ: FSLR) is looking to invest $680 million towards expanding its manufacturing capabilities through 2023. With the solar energy industry heating up, here are three companies in the limelight now.

Best Solar Energy Stocks To Watch Now

Daqo New Energy Corporation

Daqo New Energy Corporation is the first name on our list today. In brief, the China-based company primarily manufactures monocrystalline silicon and polysilicon. The likes of which serve as crucial components in solar photovoltaic (PV) systems that are used to generate solar power. According to Daqo, the company’s industry-leading high-purity polysilicon offerings cater to the needs of the global solar PV industry. Moreover, Daqo boasts an annual production capacity of 70,000 tons while being among the world’s lowest-cost producers of high-purity polysilicon.

Given the relevance of Daqo’s offerings in the emerging solar industry now, DQ stock could be in focus. Evidently, the company’s shares are currently looking at gains of 333% in the past year. In fact, DQ stock surged by over 12% yesterday on news of the recent solar manufacturing bill. With China’s current lead in the solar energy race, Daqo could be a go-to for solar investors now.

Aside from all that, the company does not seem to be slowing down as well. In its latest quarter fiscal posted last month, Daqo saw green across the board. Namely, the company reported a 51% year-over-year increase in total revenue for the quarter. Following that, it also posted year-over-year surges of 150% in net income and 144% in earnings per share. All in all, CEO Longgen Zhang appears optimistic about the company’s long-term growth potential, citing megatrends focusing on low-carbon economies. Zhang believes that Daqo is “very well-positioned to benefit from this tremendous opportunity”. Would you say that this makes DQ stock a top watch now?

top solar energy stocks (DQ stock)
Source: TD Ameritrade TOS

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Enphase Energy Inc.

Another top name in the solar energy industry now would be Enphase Energy. In short, Enphase designs and manufactures software for home solar energy solutions. This ranges from solar generation and home energy storage to real-time monitoring and control applications. Through its world-leading micro inverter-based solar-plus-storage systems, Enphase offers consumers smart and easy-to-use solar energy-based home systems. All of this is integrated into its one-stop intelligent platform. For a sense of scale, Enphase has reportedly shipped over 34 million of its microinverters and 1.5 million of its Enphase systems globally to over 130 countries.

Now, with the company’s products being marketed directly to consumers, Enphase would be in a strategic position. Ideally, as solar tech becomes more accessible and affordable, more consumers could turn to Enphase for their home energy needs. Not to mention, there are also the factors of global green government initiatives and the company’s experience in the field. All this could make for exciting times ahead for ENPH stock. In the past month, the company’s shares are already looking at gains of over 35%.

To meet the growing consumer demands in the solar market now, Enphase continues to expand its Enphase Installer Network (EIN). Just last month, the company reportedly launched EIN in India. This marks yet another massive play by the company this year as it also made similar moves in the Netherlands and Belgium. CCO Dave Ranhoff had this to say, “Our installers are central to our success because they are the face of Enphase for homeowners and small business owners, and our goal with the EIN is to continuously improve the experience of doing business with Enphase.” With Enphase seemingly kicking into high gear now, will you be keeping an eye on ENPH stock?

best solar energy stocks (ENPH stock)
Source: TD Ameritrade TOS

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Canadian Solar Inc.

Last but not least, we have Canadian Solar (CSIQ). Similar to our previous entries, CSIQ is another titan in the solar energy industry today. Firstly, the company manufactures solar PV modules while providing solar energy and battery storage solutions. Secondly, it is also a developer of utility-scale solar power and battery storage projects. The company’s massive 55-Gigawatt portfolio of premium solar PV modules is currently deployed in over 150 countries. More importantly, CSIQ stock is now sitting on gains of over 130% in the past year. Would it be wise for investors to jump on now?

Well, for one thing, CSIQ remains busy on the operational front. Just last week, the company secured a $59.58 million bilateral corporate facility with Spain-based bank, Banco Santander. According to CSIQ, the facility will serve to bolster its Global Energy business. It will do so as CSIQ expands its project development pipeline in the Europe, Middle East, and Africa (EMEA) region. In theory, this would help to further diversify the company’s streams of revenue amidst increasingly favorable market conditions. In fact, CEO Dr. Shawn Qu argues that the significant acceleration of solar PV deployment in the EMEA region is a key growth driver for CSIQ’s Global Energy business.

Overall, as CSIQ continues to grow its addressable market internationally, CSIQ stock could be on investors’ watchlists. This would be the case as its wide portfolio caters to various parties across the solar energy supply chain today. Given all of this, will you be adding CSIQ stock to your watchlist as well?

top solar energy stocks to watch (CSIQ stock)
Source: TD Ameritrade TOS

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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