Why Enphase Energy, JinkoSolar, and Daqo New Energy Stocks All Popped

Jul 23, 2021 11:41 AM ET
  • Solar energy stocks have a new best friend.
Why Enphase Energy, JinkoSolar, and Daqo New Energy Stocks All Popped
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What took place

Shares of solar power inverter-maker Enphase Energy (NASDAQ: ENPH), solar module producer JinkoSolar (NYSE: JKS), as well as polysilicon producer Daqo New Energy (NYSE: DQ) all popped today-- to differing degrees and also on numerous news items impacting the solar market.

In 2:10 p.m. EDT trading, Enphase shares are up 4%, Jinko is up 6.8%, and also Daqo is doing most importantly, delighting in a 16.6% bump in stock price.

So what

The factors for the price rises vary with the specific stocks. Enphase Energy, as an example, is reacting to a pre-earnings walking in the price target from stock analysts at J.P. Morgan. As TheFly.com reports today, J.P. thinks capitalists will certainly experience volatility in renewable energy stocks over the following couple of weeks as revenues reports come out as well as numerous stocks either rise or take appeal unsatisfactory news.

Should the last happen, J.P. advises investors to watch out for "purchasing opportunities," as Enphase-- which the expert says is worth $238 a share-- obtains marked down even below today's $179-ish share price.

At Daqo, there's an entirely various driver at the workplace. Last week Daqo revealed that it is IPO'ing 300 million shares of its subsidiary Xinjiang Daqo on the Shanghai Stock Exchange's Sci-Tech technology board tomorrow. Reportedly, the IPO price will be RMB 21.49 per share, but if the IPO pops to a greater price, this would certainly benefit Daqo appropriate, as the owner of 80.7% of the subsidiary's shares. Today's share price action, incidentally, highly recommends that capitalists assume the IPO will certainly pop-- to Daqo's benefit.

Now what

Currently what concerning the 3rd solar stock on this list? What about JinkoSolar?

As opposed to Enphase and Daqo, there's no certain news regarding JinkoSolar on the cords today. What there is, nevertheless, is an even bigger tale-- one that may include Enphase and Daqo also. Particularly, The Wall Street Journal simply reported that on the contrary side of the Sea of Japan from Jinko, the Japanese federal government has actually just revealed an ambitious plan to increase its use renewable energy in order to halve its use of fossil fuels "over the following years."

A rebirth of the country's nuclear power plans, as well as exploratory initiatives in using hydrogen fuel, appear to be at the facility of Japan's renewable energy plans. However, wind as well as solar energy will additionally comprise a big part of the change towards sustainable-- which must be good news for Jinko, as well as great news for solar stocks as a whole.

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