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SunPower Heating Up – Buy Now

If you haven't established a position in SPWR, now is the time


SunPower (SPWR) — This large-cap solar company is expected to benefit from 19%-35% anti-subsidy tariffs imposed on Chinese solar manufacturers by the U.S. Department of Commerce, according to S&P.

In late June, the company announced a pilot program with KB Home (KBH) to install “innovative energy storage solutions at certain KB Home locations in California.” Its solar power systems are currently offered to new homes buyers in more than 150 KB Home communities.

The consensus estimate is for earnings of $1.28 this year and $1.64 in 2015.

On June 25, I reported the stock had broken from a well-defined head-and-shoulders bottom, supported by high volume at key technical points of the formation. The target for the breakout was $43. However, I cautioned that the stock was somewhat overbought and recommended limit orders be entered at $36.50.

On July 8, the stock dropped to a low of $35.84, so readers should now be in SPWR. But if you missed it, buy now at the market with a trading target of $43.

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Article printed from InvestorPlace Media,

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