Why solar power stocks Enphase and Solaredge are soaring today
The two are leading the way today as the sector moves higher. Increased demand for alternative energy as oil prices climb could make solar a profitable option for investors.
Oil stocks, which have been a sky-high area of the market, began to reverse course Tuesday afternoon following President Joe Biden’s remarks on banning Russian oil imports.
But solar power stocks are up massively today.
Enphase Energy (ENPH) and SolarEdge Technologies (SEDG) rank as the S&P 500’s biggest gainers today. SunPower (SPWR) and Sunrun (RUN) are some of the other solar power names that have surged double digits during Tuesday’s trading session.
Many are still well off their all-time highs, but investors are hoping there will be increased demand for alternative energy as oil prices continue to climb.
Shares of several solar power companies have been surging Tuesday, and many are up over the past month, as traditional energy prices soar due to the Russia-Ukraine crisis.
Crude oil shot above $100 a barrel for the first time in more than a decade in the days following Russia’s invasion of Ukraine and has been continuing its ascent since. On Tuesday, Brent crude, the international oil benchmark, hit $132 a barrel, while West Texas Intermediate (WTI), the US benchmark, topped $128.
President Biden said on Tuesday that the US will immediately ban imports of Russian oil, liquefied natural gas and coal in response to Putin’s invasion of Ukraine. Oil stocks began selling off around noon.
Driven higher by rising energy prices, solar power stocks now seem to be at the forefront for investors.
The move by the US and UK to ban Russian oil imports could continue to shift more attention to the transition away from fossil fuels and into alternative energy like solar and wind.
Solar power stocks on the rise
The following solar power stocks are surging Tuesday and are up over the past month.
Enphase Energy (ENPH)
Up 10% Tuesday and 20% in the past month. Enphase is down so far in 2022 but has been forming higher highs and higher lows since the end of January, which could signal a turnaround.
The stock is down 38% from its November high of $282.46.
For more information and a five-year chart of the stock’s performance, see our dedicated guide to Enphase Energy stock.
SolarEdge Technologies (SEDG)
Up 10% Tuesday and 31% over the past month. Solaredge stock dipped at the start of 2022 but has seen several legs up since late-January.
Shares of Solaredge are down 16% from their November high of $389.71.
For more information and a five-year chart of the stock’s performance, see our dedicated guide to SolarEdge Technologies stock.
SunPower Corporation (SPWR)
Up 19% Tuesday and 29% over the past month. The stock is down slightly for the year but could soon turn positive if the momentum behind solar continues.
SunPower stock is down 64% from its January 2021 high of $57.52 and still well off its all-time high of $94.62 set back in 2007.
For more information and a five-year chart of the stock’s performance, see our dedicated guide to SunPower stock.
Up 8% Tuesday and 26% over the past month. Shares of SunRun are still down about 15% for the year, but the increasing attention on solar could fuel the stock’s rebound.
Shares are down 70% from their January 2021 high of $100.93.
For more information and a five-year chart of the stock’s performance, see our dedicated guide to Sunrun stock.
First Solar (FSLR)
Up 7% Tuesday and 14% for the month. The stock is down roughly 10% year to date but may have bottomed in late-February. The growing focus on solar stocks could push the stock positive for the first time this year.
The stock is down 35% from its November high of $123.13 75% from its all-time high of $317, set back in 2008.
For more information and a five-year chart of the stock’s performance, see our dedicated guide to First Solar stock.
Canadian Solar (CSIQ)
Up 15% Tuesday and 34% for the month. Canadian Solar is one of a few solar stocks sitting in positive territory so far this year. The stock is up 17% in 2022.
Though up for the year, shares of Canadian Solar are still trading at roughly 46% from their January 2021 high of $67.39.
For more information and a five-year chart of the stock’s performance, see our dedicated guide to Canadian Solar stock.
Maxeon Solar Technologies (MAXN)
Up 27% Tuesday and an impressive 55% for the month. The stock needs to climb another 6% to turn positive for the year.
Maxeon Solar Technologies went public only two years ago. The stock is down 76% from its all-time high of $57.96, which it set in January 2021.
For more information and a five-year chart of the stock’s performance, see our dedicated guide to Maxeon Solar Technologies stock.
Sunnova Energy International (NOVA)
Up 16% Tuesday and more than 35% over the past month. Another leg up could bring Sunnova Energy into positive territory for the year.
Shares of Sunnova Energy are down 58% from their January 2021 all-time high of $57.70.
For more information and a five-year chart of the stock’s performance, see our dedicated guide to Sunnova Energy International stock.
Thinking of buying shares of solar power stocks?
Increasing oil and gas prices makes the case for alternative energy sources like solar power more compelling.
Solar power has grown on average 42% annually over the past decade, according to the Solar Energy Industries Association. This is driven in large part by a sharp decline in solar installation costs, which have fallen by more than 70% over the past ten years.
Solar power is increasingly viewed as more competitive than fossil fuels, which has helped spur its growing share of new electric capacity additions. Indeed, more than 60% of total renewable power generation added last year had lower costs than the cheapest new fossil fuel option. In 2020, 43% of all new electric capacity added to the grid came from solar.
As the Russia-Ukraine conflict compounds the already rising cost of oil, the shift toward solar and other alternative energy sources could get more attention. And investors in this sector could benefit nicely.
Check out our guide to investing in solar stocks to learn more.
At the time of publication, Matt Miczulski did not own shares of any equity mentioned in this story.
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