Top Solar Stocks for Q1 2021

Dec 4, 2020 12:29 PM ET
  • The solar power market has actually grown rapidly even as nonrenewable fuel sources remain the leading source of international power use.

Solar sector companies originate from numerous sectors, including energies, commercial, as well as power, and include prominent supplies such as SolarEdge Technologies (SEDG) and SunRun Inc. (RUN). While some large energies as well as energy firms have solar as well as renewable resource departments, these organizations normally are not consisted of in the sector's listings because the moms and dad's key emphasis is not solar.

Solar supplies, stood for by the Invesco Solar ETF (TAN), have dramatically outperformed the broader market over the past year. TAN has given an overall return of 199.9% over the last 12 months, well over the Russell 1000's overall return of 20.7%, as of December 1, 2020.1 All stats in the tables listed below are as of December 2.

Below are the leading 3 solar supplies with the very best value, the fastest development, and also the most momentum.

Best Value Solar Stocks

These are the solar supplies with the lowest 12-month routing price-to-earnings (P/E) ratio. Because revenues can be gone back to investors in the form of returns as well as buybacks, a low P/E proportion reveals you're paying less for each dollar of earnings generated.

Best Value Solar Stocks


Price ($) Market Cap ($B) 12-Month Trailing P/E Ratio
Canadian Solar Inc. (CSIQ) 41.98 2.5 12.2
JinkoSolar Holding Co. Ltd. (JKS) 64.60 2.9 22.1
Hannon Armstrong Sustainable Infrastructure Capital Inc. (HASI) 54.22 4.1 37.4

Source: YCharts

  • Canadian Solar Inc.: Canadian Solar is based in Canada and styles, produces, and offers solar module products that transform sunlight into electricity. The business published an 83.9% decrease in take-home pay regardless of internet earnings development of 20.3% in Q3 2020, which ended September 30, 2020. Expenses and also expenditures increased much faster than earnings, helping to drive the decrease in take-home pay. Canadian Solar said that the COVID-19 pandemic was producing some uncertainties to its service procedures.2.
  • JinkoSolar Holding Co. Ltd.: China-based JinkoSolar makes solar items including silicon wafers, solar cells, and solar modules. The company additionally provides solar system combination solutions. JinkoSolar announced in late November the appointment of Dr. Jiun-Hua Allen Guo to the function of Chief Operating Officer (COO), changing Zhiqun Xu, that is surrendering.3.
  • Hannon Armstrong Sustainable Infrastructure Capital Inc.: Hannon Armstrong offers debt as well as equity funding to the energy performance and also renewable resource markets.

Fastest Growing Solar Stocks.

These are the solar supplies with the highest year-over-year (YOY) incomes per share (EPS) growth for the most recent quarter. Increasing profits show that a company's business is growing and also is generating even more cash that it can reinvest or return to investors.

Fastest Growing Solar Stocks


Price ($) Market Cap ($B) EPS Growth (%)
First Solar Inc. (FSLR) 91.06 9.7 400.0
JinkoSolar Holding Co. Ltd. (JKS) 64.60 2.9 393.1
Daqo New Energy Corp. (DQ) 40.32 2.8 285.7

Source: YCharts.

  • First Solar Inc.: First Solar layouts as well as makes solar energy systems and solar modules. The firm makes use of a thin film semiconductor technology to make electricity-producing solar modules. First Solar reported take-home pay growth of 406.3% on net sales development of 69.6% in Q3 2020, which finished September 30, 2020. Net income was boosted by lower operating costs than the year-ago quarter. The business said that its monetary results have actually not been materially impacted by the pandemic.4.
  • JinkoSolar Holding Co. Ltd.: See above for company summary.
  • Daqo New Energy Corp.: Daqo New Energy is a China-based solar energy company that makes polysilicon for distribution to suppliers of solar innovation items.

Solar Stocks with one of the most Momentum.

These are the solar stocks that had the highest possible total return over the last 12 months.

Solar Stocks with the Most Momentum


Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)

Enphase Energy Inc. (ENPH)

128.85 16.3 489.2
ReneSola Ltd. (SOL) 7.89 0.4 443.1
Daqo New Energy Corp. (DQ) 40.32 2.8 429.4
Russell 1000 N/A N/A 20.7
Invesco Solar ETF (TAN) N/A N/A 199.9

Source: YCharts.

  • Enphase Energy Inc.: Enphase Energy gives solar power cells and also keeping an eye on tools for distributors, huge installers, original equipment suppliers, critical companions, as well as home owners. The firm published take-home pay development of 26.6% despite a 0.9% decline in profits. Net income was boosted by considerably reduced cost of revenue compared to the year-ago quarter.5.
  • ReneSola Ltd.: ReneSola is a China-based renewable resource business that develops and also manages power projects. The firm primarily focuses on the development, building and construction management, and funding of solar energy projects.
  • Daqo New Energy Corp.: See over for business summary.

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