Inverse Zone

Gaming and Tech news

Sunnova, Enphase among the best solar choices of banks

Peter Cade | Stone | Getty Images

Solar companies start releasing their first quarter results next week, and Wall Street analysts say the industry’s recent pullback is getting investors on the cheap.

“The bar is low (for a change); expect beats [residential]Goldman Sachs said in a research note, adding that “the significant underperformance of solar stocks in recent months has created an attractive buying opportunity for the group.”

“We believe we are in a unique period in which there are great buying opportunities,” Morgan Stanley said in a note to clients.

The best choices of companies include Sunnova and Phase.

the Invesco Solar ETF, which tracks the sector, gained 234% in 2020 amid widespread investor enthusiasm for renewable energy stocks.

But the exchange-traded fund is now down about 17% year-to-date.

Experts point to several factors fueling the pullback, including fears about what the rate hike could mean for the industry’s cost of capital, a large market rotation between growth and value, and concerns about valuations. expanses.

Source link