Solar Stocks Alert: Why Are RUN, ENPH, SEDG, TAN Stocks Heating Up Today?


Solar stocks are shining bright today as a number of big players in the electric space see strong gains today. SunRun (NASDAQ:RUN), Enphase (NASDAQ:ENPH), SolarEdge (NASDAQ:SEDG) and Invesco (NYSE:TAN) are all in the green today as the markets rebound from last week’s slump.

Clean energy stocks: Rows of solar panels are lined up around a center aisle.
Source: Shutterstock

What’s going on in the world of solar today?

Well, it seems solar and wind stocks are seeing the upside of rising oil and gas prices. Indeed, Russia’s invasion of Ukraine has put inflationary pressure on energy prices across the board. With Russia being one of the world’s largest producers of natural gas, the nation’s recent invasion of Ukraine and subsequent sanctions have had a dramatic impact on fuel prices. European natural gas has risen as high as 60%, as Brent crude oil reached over $100 a barrel for the first time since 2015.

In the face of rapidly rising, oil, natural gas and even electricity prices, many suspect solar will make a comeback. As such, today’s jump in sun stocks hardly comes as a surprise. RUN, ENPH and TAN are each up more than 6% heading into afternoon trading. This comes as big winner SEDG trends up 11%.

What else do you need to know about solar’s resurgence today?

Solar Stocks See Perfect Storm Behind Today’s Boom

In an email to Barron’s, BMO Capital Markets analyst Ameet Thakkar commented on the current state of the energy market:

“Given the geopolitical events unfolding today that have raised energy commodity prices meaningfully higher (oil, natural gas, power) along with some increased investor belief energy prices may remain elevated it has renewed interest in clean energy stocks like Sunrun. The potential for solar to be more price competitive relative to utility electricity rates is enhanced in a high energy commodity price environment.”

This comes in addition to interest rates, which present another bullish force for solar. Many suspect the Russian-Ukraine conflict will end up reducing the vigor of upcoming interest rate hikes. Solar stocks generally benefit from lower interest rates, as many companies take out loans to finance growth investments.

Indeed, the Federal Reserve has hinted at raising interest rates for months now. Generally, investors have only increasingly suspected they will be larger and more frequent than originally predicted. However, many suspect that because of Russia’s invasion the Fed will increase rates fewer times and with lower magnitude.

All this combined paints a pretty picture for solar stocks as of late. It remains to be seen whether the industry will see sustained gains heading further into the week.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

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