Hunting for the Hottest Solar Stocks? Focus on Utilities

Utilities have made FSLR, CSIQ and SPWR profitable again

    View All  

solar panels Hunting for the Hottest Solar Stocks? Focus on UtilitiesFor investors looking at solar stocks, the past few years have been a bumpy ride. Cheaper natural gas and coal prices, dwindling government subsidies along with a huge glut of photovoltaic panels caused the sun to set on solar stocks.

Share prices for sector plunged and many firms —  including few industry stalwarts — actually had to file for bankruptcy protection.

What a difference a year makes.

Solar stocks have been on fire as several positive factors have propelled share prices to new highs. The solar stock benchmark — the Guggenheim Solar (TAN) — is up an astonishing 129%, and the bundle of sizzling solar stock is actually the number one performing equity exchange-traded fund this year.

Driving that outstanding solar stocks performance has been rising earnings at a few key producers of panels. However, for leading solar stocks First Solar (FSLR), SunPower (SPWR) and Canadian Solar (CSIQ), the key isn’t just how many panels are being sold … but who is doing the buying.

For FSLR, SPWR and CSIQ, the crucial point has been focusing efforts on grid-scale solar installations for utilities. As a result, these three solar stocks could be the best way to play the sector’s return to profitability now and into the future.

Article printed from InvestorPlace Media,

©2015 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.