That the incoming White House is in favor of the “drill baby drill” approach to energy is a negative for the renewable type if you can judge by the recent market action. The 4 names on this list are being sold by investors at such a pace that the stock of each one is dropping to lows not seen in months.
The sense is that a Trump administration will greatly boost oil and gas exploration and production and generally ignore or stomp on renewable forms of energy.
Many believe this is a short-sighted view of an issue of great significance to the planet.
For example, Exxon Mobil CEO Darren Woods this week disagreed with Trump, saying that he favors staying in the Paris Climate Accord, an international agreement designed to deal with climate change.
Investors aren’t waiting to see how it all plays out: they’re selling the renewables sector without much hesitation at all.
4 Renewable Energy Stocks Go Lower.
Enphase Energy.
The solar energy company with headquarters in Fremont, California has a market capitalization of $8.17 billion. This year’s earnings are down by 50.29% and the analysts consensus for next year’s earnings is up by 72.23%. HSBC Securities this month downgraded their opinion of Enphase from “buy” to “hold” with a price targe of $81.
First Solar.
It’s not a new 52-week low for First Solar but the stock now has slipped to below both its 50-day and 200-day moving averages.
This solar energy company is based in sunny Tempe, Arizona with manufacturing operations in Ohio, India, Malayasia and Viet Nam. Market cap is $19.43 billion. Earnings this year are +70.95% and over the past five years +41.58%. Citigroup in October upgraded the stock from “neutral” to “buy” with a $254 price target.
Fuelcell Energy.
The company says it’s committed to creating fuel cell technology to achieve “net zero carbon emissions by 2050.” Market capitalization is $122.97 million. EPS this year is up by 3.31% and up by 50.65% for the past five years. This small cap is a component of the Russell 2000.
SolarEdge Technologies.
This solar operation makes inverters, power optimizers, batteries, EV chargers and smart devices. With a market cap of $682 million the stock is included in the Russell 2000 small cap index. The company is headquartered in Herzliya, Israel. This year’s earnings are down by 492% and down over the past five years by 25.90%.
The iShares Global Clean Energy ETF.
Diversification of equities within the renewable energy sector is the goal of this exchange traded fund which holds 100 stocks. The ETF’s assets are $1.689 billion.
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
More analysis and commentary at johnnavin.substack.com.
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