Move over oil. The future of alternative energy is solar. Here’s a list of the top rated solar energy stocks for this year.
Top Solar Energy Stocks
- Sunpower (SPWR)
- Sunrun (RUN)
- Terraform Power (TERP)
Solar Energy is a relative new technology with several companies entering the space in recent years. We take a long term approach with our stock analysis so this article is suited more for long term investors who plan to hold their shares over the next 5, 10 and 20 years.
No one knows exactly where these solar energy stocks will trade by the end of 2019 but the long term trend will be upwards as more and more companies seek out clean, sustainable energy that’s cost effective, cheaper than oil and good for our planet.
While there are literally dozens of solar energy stocks, we will focus on our top 5 picks for long term investors.
- Market Cap: $1 billion
- 2018 Revenue: $1.8 billion
Sunpower is one of our favorite Solar energy plays that’s on a massive uptrend since bottoming out in December 2018. It’s up over 50% since then and has a strong presence in the growing solar industry.
Sunpower is the #1 solar provider for commercial solutions for 2 years straight and the company grew its residential business more than 15% last year with over 236,000 customers. Walmart, Toyota and Fedex are just a few of their commercial clients.
Read More: Sunpower Investor Relations
Sunrun is a residential solar installation company that’s currently #1 in the United States. With over 230,000 customers, I love Sunrun as a long term buy and hold stock due to this current market position and potential for long term growth.
Only 2 to 3% of American homes are currently using Solar energy yet study shows up to 90% of Americans are interested in utilizing solar energy.
Sunrun is the clear market leaders and one of the most pure plays on this growing trend. Quarterly revenue growth stands at 57% and has grown from $304 million in 2015 to $759 million in 2018. Cash flow remains positive but the company is still posting EPS losses.
Read More: Sunrun Investor Relations
Terraform Power (TERP)
- Market cap: $2.82 Billion
- 2018 Revenue: $777 Million
- Dividend Yield: 5.8%
Terraform power is one of the better solar energy REITs to own since they make their money by leasing out their solar and wind assets to major companies like GE.
The company pays out a nice quarterly dividend and is a good buy for dividend investors looking to add solar energy stocks to their portfolio.
Watts Generation increased from 7,167 in FY2017 to 8,088 in FY 2018. Plus, the company posted a positive 7 cents EPS. Things are looking bright for Terraform and the
Read More: Terraform Power Investor Relations
Disclosure: I own shares of Sunrun stock.
While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.