As Russia’s invasion of Ukraine continues to wreak havoc on global supply chains, a few industries are seeing gains. This appears to be the case for solar stocks today. Indeed, solar companies are up across the board currently as rising energy costs lift demand for solar.
So, what do you need to know about solar stocks today?
Well, earlier today U.S. President Joe Biden announced a ban on Russian energy imports. As a further strike against Russia for its invasion of Ukraine, Russian oil, natural gas and coal will cease entrance into U.S. ports.
Russia is the second-largest producer of natural gas in the world. The current conflict in Ukraine, and the subsequent sanctions levied against Russia, have pushed gas and oil prices to near-record highs. Indeed, today’s actions at the White House will likely put further upward pressure on energy costs as American looks into alternative energy sources.
This likely explains why solar companies are running so hot lately.
Solar Stocks Make Strong Gains on Rising Energy Costs
A number of major solar players saw a jump today amid growing expectations that energy costs will continue to accelerate. Sunrun (NASDAQ:RUN), SolarEdge (NASDAQ:SEDG) and First Solar (NASDAQ:FSLR) stocks are each up more than 7% heading into market close. However, the big winner today is undoubtedly Sunworks (NASDAQ:SUNW), which is up a massive 24% at the time of writing.
Since late February, roughly coinciding with the start of Russia’s invasion of Ukraine, solar stocks have been on the move. SUNW has seen its price increase from $1.83 in late February to today’s price of $3.83, a 112% increase. This is largely the story across the board for solar stocks. RUN has seen a jump of more than 50% since the start of the Russia-Ukraine conflict, while SEDG added $100 to its share price, currently trending around $332.
Solar continues to be one of few beneficiaries of the current geopolitical strife affecting global economies. It’s unclear if the current surge among solar stocks will continue further into conflict. However, if consumers continue making the switch to cleaner energy, solar stocks may end up heading to the sky.
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 InvestorPlace.com Publishing Guidelines.
