The surging worries about climate change have brought about the influx of Solar panels. The constant nag by the citizens has propelled the government globally to provide an alternative for energy sources. Solar panels are a welcomed idea having recorded an increase of 42% in the last 10 years. This development is due to its healthy, and emissions-free supply of energy. In this article, we will be discussing the 5 best Solar energy stocks.
As of last year, Solar energy has recorded a 28% increase. The new government administration intends to decarbonize the US economy. The agenda has increased the development of several emission-free energy sources.
43% of new electric facilities added to the electrical sector were all provided by the solar industry. Solar energies are predicted to have more demands in years to come. The major thing propelling this idea is the major rise in oil and gas prices. The price increase has made the use of gas and oil very costly to be used in industries.
Internationally China already possesses the biggest solar power, they have installed over 200 gigawatts. In 2019 alone, they installed over 50 gigawatts. In the northern European countries, they already make use of Watt per capita.
Solar power is gradually taking over the world electrical industry. In the years to come the big companies’ industry will be the talk of the town like some of the big oil companies such as Exxon Mobil, Con Edison, and other light industries such as Florida Power. However, they are presented in competition with other big companies that are fast rising. All the companies are in the struggle of getting big to deliver enormous income for their shareholders, which opens doors for more investment opportunities in the solar power sector.
Today we will analyze the 5 best Solar energy stocks, their price-earnings, and price predictions. This will help any intending investor in choosing the best stocks to invest in.
Enphase Energy (ENPH)
This solar energy company is located in California. It is considered the number one company in the world that delivers micro inverters. The company revamps direct current to alternating current from the energies gotten from solar panels. They deliver their products all over the world in Europe, Australia, and the U.S.A. However, the company is yet to conquer the Chinese market. As of recently, the company started selling storage battery systems.
Enphase Energy’s share price as of 5th February 2022 is $141.23. The company’s earnings for the last 12 months ended in September 2021 at $1.15. The company’s PE ratio as of 5-02-2022 is 112.81.
In the last 12 years, the company has had its highest PE ratio of 427.50, and the lowest ratio recorded at 15.38.
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Daqo New Energy (DQ)
Daqo new energy is a fast-rising solar energy Chinese company. The company is focused on the production of silicon, which is the raw material used in producing solar panels. They sell directly to the production companies, and it has a huge customer base.
Over the years Daqo has been consistent in generating profit, although it has not been smooth sailing.
In the last three months, Daqo’s New energy’s earnings per share as of September 2021 was $3.81. In the last 12 months which ended in September 2021 the earnings per share was $8.8.
First Solar (NASDAQ:FSLR)
First Solar (NASDAQ:FSLR) is a worldwide fast-rising solar energy company. It deals with the manufacturing and production of enhanced solar panels.
The company focuses on producing a high-end thin-filled panel. These panels are high-quality modules as their performance can not be affected due to low light or bad weather as compared to other silicon panels. The size of the produced panels is larger, and it helps in the reduction of cost per watt.
The company has one of the best balance sheets recording more cash than debts. Which gives the company the capability to continually produce and manufacture more thin-film solar panels.
In the last three months, First Solar (NASDAQ:FSLR) earnings per share as of September 2021 was $0.42 with a revenue of $583 million. In the last 12 months which ended in September 2021 the earnings per share was $3.16.
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Brookfield Renewable (NYSE:BEP)
Brookfield Renewable (NYSE:BEPC) is a solar energy stock that produces solar energies sold to consumers. The company is managed and created by leading alternative asset manager Brookfield Asset Management (NYSE:BAM). This company provides it with the cash inflow needed to pay its shareholders.
Brookfield energy company is at the top. Energy company in the hydroelectric power plans sector. It provides companies with high-end offshore wind, utility solar instruments such as rooftop, and energy storage facilities. The company ascertains that solar energy will take the world by a storm in the next year’s to come.
In the last quarter, Brookfield Renewable (NYSE:BEP) earnings per share as of September 2021 was -0.21 In the last 12 months which ended in December 2021 the earnings per share was -0.38.
Brookfield is predicted to grow in cash flow in 2025 by 11% to 16%.
Solaredge Technologies (NASDAQ:SEDG)
SolarEdge Technologies (NASDAQ:SEDG) produces inverters and power stabilizers used in the conversion of sun energy to electricity. This has enhanced the method used by companies to convert the Sun into AC electricity. A system that use a SolaEdge Technology will cost lesser than any one using a microinverter.
SolaEdge’s focus on producing cost efficiency power stabilizers has propelled it into becoming one of the most sought after companies by shareholders. The company has also made plans on increasing it’s revenue by investing in the production of new solar equipment.
In the last quarter, SolarEdge Technologies (NASDAQ:SEDG) earnings per share as of September 2021 was $1.45 increasing from the $1.28 generated from the previous quarter. In the last 12 months which ended in September 2021 the earnings per share was $0.96 with a recorded revenue of $526.4 million.