Solar energy companies often create solar panel products so both individual consumers and businesses can harness the sun’s energy. With all the government support solar energy firms have enjoyed over the past decade, nothing could have prepared them for current volatile non-renewable energy prices and elevated interest rates. This is leading to there being many solar stocks to sell. The performance of the Global X Solar ETF (NASDAQ:RAYS) underscores how tough its has been for solar stocks over the past 12 months. RAYS has plummeted more than 40% since last May, and if you gauge performance over the past 5 years, the ETF has fallen 54%.
Stock market volatility, which is contingent upon how the macro environment is performing, could cause certain solar stocks to fall even further. Below are 3 solar stocks to sell amidst a potential market crash.
Sunnova Energy Interntional (NOVA)
Headquartered in Houston, Texas, Sunnova Energy International (NYSE:NOVA) operates and maintains a fleet of residential solar panels that span across more than 438,000 customers. The company operates in all 50 states and doesn’t just focus on panel electricity generation and maintenance. Sunnova provides a holistic energy management platform that helps homeowners to install and manage battery storage systems for their electric vehicles.
Sunnova experienced triple digit growth in 2022 as regular energy prices skyrocketed and consumers as well as businesses were looking to diversify their energy mix with installing solar panels. Energy prices have largely come down from their 200 highs, but inflation remains a concern for many, especially for the average consumer who might have wanted to purchase a solar panel. Sales growth in both Q4 2023 and Q1 2024 has declined on a year-over-year perspective, illustrating the pervasive lack of demand for solar energy these days.
NOVA shares have plunged over 70% YTD. The solar company’s share price could fall even further, if the market faces downward pressure.
JinkoSolar (JKS)
JinkoSolar (NYSE:JKS) does not manufacture solar panels directly, but it does design and develop photovoltaic products found in many panels. From silicon wafers and solar cells to silicon ingots, JinkoSolar has developed a comprehensive photovoltaic product portfolio. JinkoSolar experienced strong growth during 2022, like many solar energy stocks, but that has growth has calmed down much in 2023. Still, JinkoSolar has been able to deliver solid double-digit sales growth throughout much of 2023.
Unfortunately, JinkoSolar, being based in China, has had to deal with the rising geopolitical tensions between the U.S. and the world’s second largest economy. In 2023, JinkoSolar was subjected to a raid of two facilities in Florida. JinkoSolar has seen its share price fallen more than 30% on a YTD-basis, and further escalations in geopolitical tensions could lead to a sharper sell off.
Altus Power (AMPS)
Altus Power (NYSE:AMPS) is the final entry on this list. Similar to the other entries, Altus specializes in creating solar energy generating products. Altus also provides energy storage systems.
Unlike the other stocks on this list, Altus has continued to deliver solid double-digit sales growth, despite there being macroeconomic headwinds. For example, in the solar company’s first quarter earnings report of 2024, revenue increased 38% on a year-over-year basis. Adjusted EBITDA also increased 23% year-over-year to $19.7 million for the quarter.
However, increased market volatility due to the macro environment will have an effect on Altus Power’s share price. AMPS has fallen nearly 39% since the start of the year, despite its decent financial results. If inflation doesn’t continue to go down, stocks like AMPS will have a hard time.
On the date of publication, Tyrik Torres 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.
