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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 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.