Solar stocks have been hard since peaking in April — with the Guggenheim Solar ETF (TAN) falling by roughly one-half since making a double top with the highs set in early 2014.
The industry group had been trying to get off the mat since August but was slammed lower again on Tuesday as investors once again lose faith in sun-powered renewables. Unfortunately, lofty goals and environmental ideals simply aren’t translating into cold, hard cash.
As a result, solar stocks have been taking hit after hit.
Here are five solar stocks to avoid if you don’t want to kill your portfolio.
Solar Stocks: SunEdison (SUNE)
SunEdison (SUNE) fell more than 21% to drop out of four-month trading range on Tuesday after reporting mixed third-quarter results and narrowing its full-year guidance. CEO Ahmad Chatila said on the earnings call that he wanted the company to “become more boring” as it focuses on cash-flow generation.
The company is vertically integrated, providing design, installation, financing and operational support to downstream solar power customers, as well as manufacturing raw solar modules.
Solar Stocks: SolarCity (SCTY)
SolarCity (SCTY), a solar system leasing company that facilitates the process for homeowners, has lost more than half its value since August as investors continue to abandon the stock. The company reported weak third-quarter installation numbers, lowered its full-year guidance and provided a downbeat outlook on 2016.
Analysts at R.W. Baird warned the stock will continue to be under near-term pressure as expectations are recalibrated.
Solar Stocks: Jinkosolar (JKS)
Jinkosolar (JKS) has dropped back below its 200-day moving average to end a short-lived rally to its springtime highs. The Chinese company has been hit by reports that Beijing might lower solar and wind tariffs, which could subject it to increased competition from cheaper imports.
The company will report earnings on Nov. 19. Analysts are looking for earnings of $1.02 per share on revenues of $560 million.
Solar Stocks: JA Solar Holdings (JASO)
JA Solar Holdings (JASO), another Chinese solar play, has dropped back below its 50-day moving average after stalling near its 200-day moving average over the last two months. The Chinese tariff news is weighing. As is cautious analyst coverage: Both Roth Capital and RBC Capital Markets recently lowered their price targets.
The company will report earnings on November 17. Analysts are looking for earnings of 32 cents per share on revenues of $512 million.
Solar Stocks: Trina Solar (TSL)
Trina Solar (TSL), one of the older Chinese solar companies, has similarly dropped below its 50-day moving average after bonking on its 200-day moving average. Analysts have raised concerns about the company’s downstream expansion plans — in system design and installation — due to lack of experience.
The company will report earnings on November 23. Analysts are looking for earnings of 30 cents per share on revenues of $762 million.