Solar stocks are on the rise in 2016, and a big part of the success of solar is falling oil prices that have shaken markets around the world. Following the announcement that the meeting among OPEC members in Doha didn’t result in oil production cuts, solar stocks continued to rise.
Two of the most prominent solar stocks in 2016 include:
1. SunPower (SPWR)
A company that designs and manufactures solar cells and panels, the company has a market cap of $2.9 billion and forecasts 10% EPS growth. The company does not pay dividends, and the stock has dropped from $34 a share a year ago to $21.52 a share today.
Analysts predict that the company’s sluggish year will turn around when SunPower announces a big jump in earnings per share on May 5th.
2. Solar City (SCTY)
Solar City does everything from the design and manufacturing of solar energy systems to selling systems to the government and leasing facilities. Run by Elon Musk, many believe Solar City has a personality to continue its hot streak for years to come.
Solar City stock is another stock that has performed poorly over the last year, but many of the company’s projects are coming to fruition. Estimates for 2016 and 2017 have been revised upward for the company, marking a potential change in the near future in stock prices.
The stock is up 1.06% on the day to $30.57. A month ago, the stock was trading at $26.56 a share. Prices for Solar City have fallen from $57 a share in December, but we expect the stock to have a breakout at the end of 2016.
Solar is still a fickle beast with law and rule changes harming many companies in the sector, including Solar City. As prices for solar continue to fall and adoption of solar continues to increase, we expect a bright future for the solar industry as a whole.