Top Solar Stocks for Q1 2020

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The solar energy industry has been growing rapidly even as fossil fuels remain the dominant form of energy. Companies considered to be solar-focused come from multiple sectors, including utilities, industrial, and energy and include popular stocks such as First Solar, Inc. (FSLR) and SunPower Corp. (SPWR). While some of the major mainstream utilities and energy companies also have solar and renewable energy divisions, these corporations are not typically included in listings of solar companies because they do not focus the majority of their efforts in this area. In the 12-month trailing period, the solar industry has far outpaced the growth of the S&P 500, as the Invesco Solar ETF (TAN) saw a price change of 61.8% compared to S&P gains of 26.4%. All figures are as of January 8, 2020.

Here are the top solar stocks with the best value, the fastest earnings growth, and the most momentum.

Best Value Solar Stocks

These are the solar sector stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. A low P/S ratio suggests that a stock is undervalued, as investors are willing to pay less per dollar of sales.

Best Value Solar Stocks
  Price ($) Market Cap ($B) 12-Month Trailing P/S Ratio
JinkoSolar Holding Co. Ltd. (JKS) 22.23 1.0 0.28
Canadian Solar Inc. (CSIQ) 22.57 1.4 0.43
SunPower Corp. (SPWR) 7.68 1.3 0.63
Source: Investopedia
  • JinkoSolar Holding Co. Ltd.: JinkoSolar is a Chinese holding company with interests in the solar product space. The firm produces solar cells, modules and other materials related to solar energy. Earlier in January, JinkoSolar announced a partnership with Shanghai Institute of Space Power-Sources to co-develop solar cell technology with space applications.
  • Canadian Solar Inc.: Solar module product developer Canadian Solar designs, builds, and sells modules with residential, commercial, and industrial applications. In December, Canadian Solar launched a $150 million share repurchase program.
  • SunPower Corp.: SunPower designs and builds silicon photovoltaic cells and related solar materials. In November, the company revealed plans to separate into two aligned publicly-traded companies: SunPower and Maxeon Solar Technologies.

Fastest Growing Solar Stocks

These are the solar sector stocks with the highest year-over-year (YOY) quarterly revenue growth for the most recent quarter. Rising revenues show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.

Fastest Growing Solar Stocks
  Price ($) Market Cap ($B) YoY Revenue (Quarterly) Growth (%)
Enphase Energy Inc. (ENPH) 31.00 3.8 130.8
SolarEdge Technologies Inc. (SEDG) 104.16 5.1 73.5
Vivint Solar Inc. (VSLR) 7.93 1.0 33.5
Source: Investopedia; Enphase, SolarEdge Technologies, Vivint Solar Investor Relations
  • Enphase Energy Inc.: Enphase Energy manufactures solar power materials with a focus on increasing reliability and productivity of solar modules. In Q3 2019, Enphase Energy reported non-GAAP diluted earnings per share (EPS) of $0.23, up from a loss of $0.03 per share in Q3 2018.
  • SolarEdge Technologies Inc.: SolarEdge Technologies builds and distributes equipment and technology for photovoltaic arrays. The Israeli company launched in 2006 and did an IPO in 2015.
  • Vivint Solar Inc.: Focused on the residential solar space, Vivint Solar designs, installs, and maintains photovoltaic systems across nearly two dozen states in the U.S. The company reported a 25% YOY increase in installations for Q3.

Solar Stocks With the Most Momentum

These are the solar sector stocks that had the highest price change over the last 12 months.

Solar Stocks With the Most Momentum
  Price ($) Market Capt ($B) 12-Month Trailing Price Change (%)
Enphase Energy (ENPH) 31.00 3.8 450.6
SolarEdge Technologies Inc. (SEDG) 104.16 5.1 193.7
Daqo New Energy Corp. (DQ) 54.38 0.7 110.6
Invesco Solar ETF (TAN) N/A N/A 61.8
S&P 500 (SPY) N/A N/A 26.4
Source: Investopedia; Yahoo! Finance
  • Enphase Energy Inc.: See above for company description.
  • SolarEdge Technologies Inc.: See above for company description.
  • Daqo New Energy Corp.: Chinese solar energy company Daqo New Energy manufactures polysilicon for distribution to manufacturers of solar technology products.

Source: Investopedia

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