Joe Biden’s win in the presidential election is bullish for alternative energy stocks. The Biden-Harris campaign has pledged to increase solar penetration, including 8 million household solar installations…
In late July, Biden announced a proposal to spend $2 trillion on clean energy and plans to add more than 500 million solar panels to America’s energy infrastructure in the next five years. The United States trade body Solar Energy Industries Association has recently released an action plan for the next Congress, setting out its support for legislation to expand the solar market. Another factor is that costs are plummeting, while energy storage costs are getting more reasonable.
Biden believes that his energy plan is a crucial framework for meeting climate challenges and sees the industry also as a source of growth and jobs. With federal government backing, solar energy stocks like Enphase Energy, Inc. (ENPH), First Solar, Inc. (FSLR), and Canadian Solar Inc. (CSIQ) should witness robust momentum in the upcoming months.
Enphase Energy, Inc. (ENPH)
ENPH designs, manufactures, and sells software-driven solar photovoltaic energy solutions globally. The company manufactures semiconductor-based microinverter that efficiently convert energy at an individual solar module level, as well as energy monitoring and control services.
On November 9th, ENPH announced that Cutler Bay Solar Solutions has installed 1.5 MWh of its storage systems in Florida homes. On October 20th, ENPH announced a similar strategic partnership with SunCool Energy to supply Enphase storage systems in South Florida. This will significantly increase the ENPH’s market reach along with its revenues.
ENPH’s revenue increased 42.2% sequentially to $178.50 million in the third quarter ended September 2020. Operating income grew 53.5% year-over-year to $51.76 million, while EPS rose 24% from the year-ago value to $0.31. Non-GAAP gross margin increased 104 basis points to 41% over this period.
The consensus EPS estimate of $0.42 for the fourth quarter ending December 2020 indicates a 7.7% improvement year-over-year. ENPH has an impressive earnings surprise history as well, as it beat the street EPS estimates in each of the trailing four quarters. The consensus revenue estimate of $255.23 million for the fourth quarter indicates a 21.5% increase year-over-year. The stock has gained 360.9% year-to-date.
How does ENPH stack up for the POWR Ratings?
A for Trade Grade
A for Peer Grade
B for Buy & Hold Grade
B for Overall POWR Rating.
The stock is ranked #1 out of the 16 stocks in the Solar industry,
First Solar, Inc. (FSLR)
FSLR is a manufacturer and provider of photovoltaic solar panels and utility-scale PV power plants operating globally. The company functions in two segments – Modules and Systems. Under the Module segment, cadmium telluride solar modules are developed to convert sunlight into electricity, whereas, the Systems segment is responsible for providing power plant solutions.
On September 23rd, FSLR announced that JP Energie Environment selected its photovoltaic solar modules to…
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