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3 Solar Stocks to Buy Now

Solar stocks are volatile, but these three picks rank among the best energy stocks

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Solar City (SCTY)

solarcity sctyThe first pick in this sector is SolarCity (SCTY), for one simple reason. SCTY is different from most solar stocks.

See, a good chunk of solar stocks, such as First Solar (FSLR) and Trina Solar (TSL), are completely dependent on the pricing of the panels they produce — and that’s why they imploded just a few years back. Producers in China flooded the market with inexpensive solar panels, which drove down prices big-time.

However, SCTY doesn’t produce panels like those solar stocks. Instead, it leases and installs them for residential and commercial customers.

That has been working out pretty well for SolarCity. The company has more or less doubled in size each year, while its market cap has already multiplied sixfold since it went public in December 2012, according to Slate.

One thing to note: SCTY has not yet turned a profit and in fact continues to absorb huge losses. But it already is the largest installer of residential solar energy systems in the U.S. And as the the solar sector keeps growing, that’s a pretty good place for SCTY to be.

Article printed from InvestorPlace Media,

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