It’s no secret that any properly diversified portfolio should hold its fair share of energy stocks, but choosing the right slice of the energy sector — from oil stocks to solar stocks to everything in between — certainly isn’t easy.
Solar stocks, for example, have been quite the roller coaster for investors. Solar stocks soared to new highs in 2008 and 2009, but most had sunk to new lows by 2011.
Now, investors sentiment has again reversed, with solar stocks sizzling to say the least. Outsized gains have made the solar sector home to some of the best energy stocks of the year.
Many solar stocks still remain far off their previous peaks, but the mega-shift toward renewable energy could propel these picks to new highs. Continued growth in demand and consolidation in the Chinese solar sector, for example, are just a few reasons boarding this ride could be a savvy move in the long run.
Let’s take a look at the three best solar stocks to buy now if you believe in this booming sector.