The solar energy industry has grown rapidly even though fossil fuels remain the dominant source of global energy use. Companies in the solar industry come from multiple sectors, including utilities, industrial and energy, and include popular stocks such as SolarEdge Technologies (SEDG) and SunRun Inc. (RUN). While some large utility and energy companies have solar and renewable energy divisions, these companies are generally not included in the industry lists because the main focus of the matrix is not solar energy.
Solar energy stocks, represented by Invesco Solar ETF (TAN), have dramatically outperformed the broader market over the past year. TAN has provided a total return of 138.2% over the last 12 months, well above the total return of the iShares Russell 1000 ETF (IWB) of 44.4%. These market performance numbers and all statistics in the tables below are as of June 14, 2021.
Here are the top three solar energy stocks with the best value, the fastest growth, and the most momentum.
These are the solar energy stocks with the lowest price-earnings (P / E) ratio in the last 12 months. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P / E ratio shows that you are paying less for every dollar of profit generated.
|Best value solar stocks|
|Price ($)||Market Cap ($ B)||Final 12-month P / E ratio|
|SunPower Corp. (SPWR)||25.90||4.5||12.1|
|First Solar Inc. (FSLR)||79.59||8.5||16.4|
|Daqo New Energy Corp. (DQ)||68.69||5.1||29.4|
- SunPower Corp .: SunPower designs and builds solar panels and systems. The company serves residential, commercial, government and utility clients.
- First Solar Inc .: First Solar designs and manufactures solar energy systems and solar modules. The company uses thin-film semiconductor technology to manufacture its solar modules. First Solar announced financial results in late April for the first quarter of its fiscal year 2021, the three-month period ending March 31, 2021. Net revenue increased 131.2% with revenue growth of the 51.0%. Net proceeds were driven by a one-time gain of $ 150.9 million on the sale of the company’s project development in the United States and O&M businesses in North America.
- Daqo New Energy Corp .: Daqo New Energy is a China-based manufacturer of polysilicon used by manufacturers of solar technology products. The company announced financial results in May for the first quarter of fiscal 2021, which ended on March 31, 2021. Net income attributable to Daqo New Energy shareholders (which excludes non-controlling interests) increased 150.4% with a revenue growth of 51.7%. Lower operating expenses compared to the prior year quarter helped boost net income.
Here are the top solar energy stocks ranked by a growth model that rates companies based on a 50/50 weighting of their most recent quarterly year-over-year percentage revenue growth and their quarterly earnings per share (EPS) growth. more recent. Both sales and profits are critical factors for the success of a business. Therefore, ranking companies by a single growth metric makes a ranking susceptible to accounting anomalies from that quarter (such as changes in tax law or restructuring costs) that can make one or the other figure unrepresentative. of the business in general. Companies with quarterly EPS or revenue growth greater than 2,500% were excluded as outliers.
|Fastest Growing Solar Stocks|
|Price ($)||Market Cap ($ B)||EPS growth (%)||Revenue growth (%)|
|Daqo New Energy Corp. (DQ)||68.69||5.1||149.4||51.7|
|First Solar Inc. (FSLR)||79.59||8.5||130.6||51.0|
|Hannon Armstrong Sustainable Infrastructure Capital Inc. (HASI)||53.82||4.2||74.3||26.6|
- Daqo New Energy Corp .: See above for company description.
- First Solar Inc .: See above for company description.
- Hannon Armstrong Sustainable Infrastructure Capital Inc .: Hannon Armstrong is focused on investing in solutions for climate change. Provides capital to companies engaged in energy efficiency, renewable energy, and other sustainable infrastructure markets. The company announced financial results for the first quarter of fiscal 2021, which ended March 31, 2021, in early May. Net revenue increased 109.8% on revenue growth of 26.6%. Net income received a significant boost from a $ 54 million gain in investment income from the equity method.
These are the solar energy stocks that had the highest total returns in the last 12 months.
|Solar actions with greater momentum|
|Price ($)||Market Cap ($ B)||Total return at 12 months (%)|
|ReneSola Ltd. (SOL)||9.45||0.7||694.1|
|GCL-Poly Energy Holdings Ltd. (GCPEF)||0.16||4.1||529.4|
|Daqo New Energy Corp. (DQ)||68.69||5.1||507.2|
|iShares Russell 1000 ETF (IWB)||N / A||N / A||44.4|
|Invesco Solar ETF (TAN)||N / A||N / A||138.2|
- ReneSola Ltd .: ReneSola is an international renewable energy company that builds and manages energy projects. The company primarily focuses on the development, construction management and financing of solar energy projects. ReneSola announced in late May financial results for the first quarter of fiscal 2021, which ended March 31, 2021. Net income attributable to the company was $ 0.8 million, a significant change from the net loss of $ 4.4 million in the quarter of the previous year. Revenues grew 7.6%.
- GCL-Poly Energy Holdings Ltd .: GCL-Poly Energy is a Hong Kong-based solar photovoltaic company. It supplies photovoltaic materials, such as polysilicon and silicon wafers, and offers solar system solutions. The company also owns several large-scale solar farms around the world.
- Daqo New Energy Corp .: See above for company description.
The comments, opinions and analyzes expressed in this document are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or adopt an investment strategy. While we believe that the information provided in this document is reliable, we do not guarantee its accuracy or completeness. The opinions and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions and analysis included in our content are presented on the date of publication and may change without notice. The material is not intended to be a complete analysis of all material facts relating to any country, region, market, industry, investment, or strategy.
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reports, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow to produce accurate and unbiased content at our
YCharts. “Financial data. “Accessed June 14, 2021.
First Solar Inc. “First Solar, Inc. Announces First Quarter 2021 Financial Results. “Accessed June 14, 2021.
Daqo New Energy Corp. “Daqo New Energy Announces Unaudited First Quarter 2021 Results. “Accessed June 14, 2021.
Hannon Armstrong Sustainable Infrastructure Capital Inc. “Hannon Armstrong Announces First Quarter 2021 Results and Declares Dividends. “Accessed June 15, 2021.
ReneSola Ltd. “ReneSola Q1 2021 Letter to the shareholder, “Page 10. Accessed June 15, 2021.