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A Biden Win Could Fuel Further Upside in Solar Stocks, like SunPower

On speculation Joe Biden could win the 2020 election, solar stocks, like SunPower (NASDAQ:SPWR) are right back in the spotlight.

a phone with the sunpower logo in front of a U.S. flag
Source: IgorGolovniov /

In fact, just over the last few days, the SPWR stock ran from a low of $16 to $19.40.

  • Invesco Solar ETF (NYSE:TAN) ran from $67.50 to $75.46
  • SolarEdge (NASDAQ:SEDG) popped from $200 to$233
  • First Solar (NASDAQ:FSLR) ran from $80 to $86.90
  • SunRun (NASDAQ:RUN) ran from $50 to $58

This may only be the start of much bigger moves in solar, and other green stocks.

That is, if Joe Biden wins the election. While I’ll leave political opinion out of this, a Biden win is looking likely with Georgia recently flipping, and a very tight race in Pennsylvania.

Should Biden pull off the win here, solar stocks, like SunPower could ramp higher. In fact, I wouldn’t be shocked to see SPWR at $40, near-term if that happens.

Joe Biden is a Fan of Green Energy

For one, if Joe Biden wins, the U.S. is likely to rejoin the Paris Climate accord.

“Today, the Trump Administration officially left the Paris Climate Agreement. And in exactly 77 days, a Biden Administration will rejoin it,” he tweeted.

Two, he has already laid out a $2 trillion clean energy and infrastructure plan, with hops for net zero emissions by 2050. In addition, he has said he wants to “upgrade four million buildings and two million homes over four years to meet new energy efficiency standards,” as noted by The Conversation.

Three, according to Joe Biden’s site:

He “believes the Green New Deal is a crucial framework for meeting the climate challenges we face. It powerfully captures two basic truths, which are at the core of his plan: (1) the United States urgently needs to embrace greater ambition on an epic scale to meet the scope of this challenge, and (2) our environment and our economy are completely and totally connected.”

All of that is bullish for green stocks, like SunPower stock.

SunPower Earnings Are Shining Bright, Too

While the company posted an EPS loss of four cents as revenue sank 9% to $274.8 million, it was still better than expected. Analysts were anticipating a loss of five cents on revenue of $232.86 million.

“Our solid third quarter results reflect the strong demand for our industry-leading solutions in both our residential and commercial markets,” SunPower CEO Tom Werner said.

The company also raised its 2020 net income and adjusted EBITDA guidance. Now, for the fiscal year 2020, it expects to post GAAP revenue of $1.12 billion to $1.16 billion, as compared to prior guidance of $1.06 billion to $1.10 billion. With regards to adjusted EBITDA, it sees a range of $26 million to 36 million in the fourth quarter.

Fiscal year 2020 EBITDA guidance was raised to a range of $30 million to $40 million, as compared to prior guidance for $20 million to $30 million.

The Bottom Line on SunPower Stock

With a potential Biden win, green stocks, like SunPower stock could easily rocket higher, in my opinion. With his hopes of rejoining the Paris Climate Accord, and a $2 trillion clean energy and infrastructure plan, the sky’s the limit for related stocks, like SPWR.

Plus, we have to remember, he wants to “upgrade four million buildings and two million homes over four years to meet new energy efficiency standards,” as noted by The Conversation.

While there is no guarantee of a Biden win, speculation is likely to drive these stocks higher. On his potential win, I believe the SunPower stock could hit $40, near-term.

Right now, this is all based off speculation he could win.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Ian Cooper, an contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities.

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