Solar stocks have a lot of long-term potential in the age of climate change. Currently, less than 4% of all U.S. power generation comes from solar, so there’s plenty of room for growth in the years ahead.
If you’re a believer in the future of solar power and can look past the recent volatility from rising energy prices, Forbes Advisor would like to share with you what we believe are among the best solar power stocks to consider right now.
The Best Solar Power Stocks of July 2024
Stock (ticker) | Market Cap |
---|---|
$17.1 billion
|
|
$7.9 billion
|
|
$3.1 billion
|
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$2.8 billion
|
|
$2.1 billion
|
|
$1.5 billion
|
|
$1.3 billion
|
|
$604 million
|
Methodology
Our list of the best solar power stocks is constructed using strict criteria that aim to identify companies with consistently growing operations and strong analyst sentiment. Given the headwinds for the solar industry over the last year, we placed a priority on longer-term growth and future analyst predictions over things like profitability over the last few quarters.
- Minimum market cap of $500 million. Size isn’t everything, but a valuation this big means these stocks operate at a scale that may help them weather volatility better than smaller companies.
- U.S. listings. All stocks are listed on major U.S. exchanges for easy trading, even those headquartered overseas.
- Average three-year sales growth of more than 10%. While each solar stock has experienced its own ups and downs, all the names on this list have seen double-digit sales growth on average over the last three years. Considering some of the broader uncertainty and sector-specific volatility in that period, that’s a good indicator of consistency.
- Consensus analyst rating of “buy” or “strong buy.” While terminology can differ, Wall Street firms have five rankings for stocks. Using a numerical system of 1-5 where 1 is “strong buy” or equivalent, “3” is hold and 5 is “strong sell,” the following stocks all measure an average rating of less than 3.
Please note that the stocks above were selected by an experienced financial analyst, but they may not be right for your portfolio. Before you decide to purchase any of these stocks, do plenty of research to ensure they are aligned with your financial goals and risk tolerance.
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Via Datalign Advisory