by Kyle Woodley | January 11, 2012 4:42 pm
Winter, schminter. The sun ignored the calendar and came out full force Wednesday, with a number of solar stocks booming to double-digit gains amid newfound optimism for the sector.
Deutsche Bank released a report saying that while it expected losses from solar companies in their Q4 earnings reports, demand could increase in the next month. Combined with already-low estimations, that could “likely drive upside sentiment surprise,” DB’s Vishal Shah wrote in the report.
Axiom Capital’s Gordon Johnson removed sell ratings on five solar stocks, as reported by The Street, citing the possibility of short-term benefits from a boom in German demand.
While Johnson also reiterated his long-term negativity for the sector, much-battered solar stocks still had all the nearby positivity they needed. Down the line, large-scale gains were made by JinkoSolar Holding (NYSE:JKS, +32%), ReneSola (NYSE:SOL, +30.8%), Trina Solar (NYSE:TSL, +29.2%), Suntech Power (NYSE:STP, +27.3%), MEMC Electronic Materials (NYSE:WFR, +21.5%), Yingli Green Energy (NYSE:YGE, +20.4%) and Canadian Solar (NASDAQ:CSIQ, +15.5%).
Even First Solar (NASDAQ:FSLR) — the poster child for poor-performing solar stocks in 2011, with a 75% decline — gained a robust 7.8%, and the sector’s gain as a whole was reflected in a 12% jump in the Guggenheim Solar ETF (NYSE:TAN).
Momentum stock Crocs (NASDAQ:CROX), maker of those colorful plastic shoes you see everywhere, made some headway for the first time in months, gaining 16% after it announced that it expects full-year revenues to hit $1 billion for the first time when it announces fourth-quarter earnings. The company also said it expects quarterly revenues to be at the high end of previous guidance of $200 million to $205 million.
CROX has been trading in a range around the mid-teens since mid-October, when a poor earnings report took a 40% bite out of the stock. It finished Wednesday at $18.56 per share.
As of this writing, Kyle Woodley did not own a position in any of the aforementioned stocks.
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