While energy always has been a vital geopolitical issue, the current conflict has set any investors looking for the best solar stocks to buy.
Tied to the broader renewable energy sector, the solar industry is fundamentally enticing, converting free and available sunlight into usable power.
Europe has accelerated efforts to implement renewable energy infrastructures. The U.S. also has its eye on infrastructure, particularly with the rollout of electric vehicles. By powering cars with renewables, the U.S. and its allies could reduce foreign energy dependence.
Publicly traded solar companies have proven volatile and this year has proven no different. Nevertheless, at the end of the day, diversifying energy infrastructures and resource channels will likely be the ultimate goal. Just remember to consider the long term when looking for solar stocks to buy.
|DQ||Daqo New Energy||$64.01|
First Solar (FSLR)
One of the most popular names among solar stocks to buy, First Solar (NASDAQ:FSLR) mainly provides solar panels and photovoltaic powerplants.
In addition, it offers construction and maintenance services, along with recycling processes for solar-related equipment. First Solar distinguishes itself from the competition through its ultra-thin semiconductor technology, enabling enhanced efficiency and resilience for its modules.
Initially, the company saw a robust move up following Russia’s attack on Ukraine. However, since early April, FSLR shares have admittedly suffered significant headwinds. A disappointing print for its first quarter of 2022 earnings didn’t help. Revenue declined 54% year over year.
Still, with a current market capitalization of almost $8 billion, FSLR also is one of the larger solar stocks to buy. Down more than 18% against the start of the year, those investors with a patient outlook may want to consider adding First Solar to their portfolios.
Canadian Solar (CSIQ)
Canadian Solar (NASDAQ:CSIQ) focuses on the design, manufacturing and distribution of modules for residential, commercial and industrial clients.
In addition to modules, Canadian Solar offers inverters and system kits. Per its website, the company has subsidiaries in 23 countries and regions on six continents, along with 20 manufacturing facilities in Asia and the Americas.
Benefitting partially from renewed interest in renewable energy solutions, Canadian Solar posted revenue of $1.25 billion in Q1 of this year, up nearly 15% from the $1.09 billion in sales posted in the year-ago quarter.
CSIQ is up 12% year to date. The Nasdaq index is down over 24% during the same period, making Canadian Solar intriguing on a relative level.
SolarEdge Technologies (SEDG)
SolarEdge Technologies (NASDAQ:SEDG) manufactures and distributes equipment and technology for photovoltaic arrays (multiple solar panels wired together). SolarEdge provides optimization services for these systems, along with monitoring solutions.
Enjoying substantial demand from a heightened focus on renewable energy infrastructures, SolarEdge brought home the goods in Q1 2022, ringing up top-line sales of $655 million.
This tally was up nearly 62% from the prior-year quarter’s result of $405 million. In addition, the company posted net income of $33 million in the most recent quarter, up 10% year over year.
SEDG has been choppy this year but is trading up almost 9% year to date. It could be one of the best solar stocks to buy because of revived interest in its services.
Enphase Energy (ENPH)
A global energy management technology firm, Enphase Energy (NASDAQ:ENPH) is intriguing for its battery storage solutions.
Through its Enphase IQ batteries, solar-equipped residences can enjoy power despite disruptions to the grid.
This system also can deliver power even in harsh weather conditions like rain, sleet, snow and ice.
This narrative will likely command relevance, with a recent Bloomberg report noting that California energy officials have warned about the risk of blackouts for the next three summers due to power supply shortages. Further, the wide-ranging impact of climate change has brought unusual weather patterns throughout the globe, necessitating greater focus on energy resilience systems.
Unsurprisingly, Enphase had a strong showing for Q1 2022, ringing up $441 million in sales. This represented 46% growth year over year. Currently, ENPH is up 13% year to date.
A China-based company focused on the production of solar cells, modules and other sector-related materials, JinkoSolar (NYSE:JKS) may initially draw skepticism.
After all, the Chinese economy hasn’t exactly been a bastion of confidence in the wake of government-imposed lockdowns that provoked severe mitigation efforts.
Still, the broader headwinds that have many people questioning China-based investments haven’t dampened enthusiasm for JKS. In fact, it’s one of the top-performing solar stocks to buy, gaining more than 44% year to date.
Some of the bullishness is tied to the underlying company’s massive footprint, which serves customers in the U.S., Europe and the Middle East, along with its home market.
But the biggest catalyst for JKS’ move is JinkoSolar’s outstanding Q1 2022 performance. Its revenue haul of $2.3 billion was almost twice the sales tally of $1.22 billion in the year-ago quarter. With momentum on its side, JKS is one of the best solar stocks to buy.
Daqo New Energy (DQ)
Another China-based solar company, Daqo New Energy (NYSE:DQ) is engaged in the manufacture of monocrystalline silicon and polysilicon, primarily for use in solar photovoltaic systems.
While investmenting in the world’s second-largest economy appears fraught, DQ is one of the more compelling solar stocks to buy over the long run.
Much of the optimism is tied to geopolitics.
Early in the Ukraine crisis, many international policy experts feared that Russia would recruit the help of China, militarily and otherwise. However, Reuters reported that China hasn’t provided the robust support that the Kremlin was seeking. Apparently, Beijing is attempting to play a balancing act, not wanting to ruin economic relations with the West.
Daqo is one of the best-performing solar stocks to buy, with DQ gaining 52% year to date. With even China seemingly pivoting away from Russia-sourced hydrocarbons, DQ is an interesting name to add to your portfolio.
SunPower (NASDAQ:SPWR) sells, installs and finances solar power products, such as panels, batteries, mounting hardware, and monitoring software.
Most recently, home-furnishings retailer Ikea and SunPower announced a collaboration that will make solar energy easier to access. This program has the potential to lower energy costs while enhancing overall sustainability.
Financially, SunPower is a work in progress. In Q1 2022, the company posted revenue of $350 million, up 46% from the year-ago tally’s $240 million in sales. However, SunPower also posted a net loss of $28 million in Q1 2022, although it was an improvement from a loss of $48 million one year ago.
So far, the market has been pensive on SPWR, where it’s down more than 10% so far this year. Still, there’s some evidence to suggest that SunPower shares are steadily recovering, potentially make it one of the solar stocks to buy.
On the date of publication, Josh Enomoto did not have (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.