Three Solar Energy Stocks to Buy and Hold

Following the recent spike in global oil and gas prices, solar energy companies are starting to recover. According to Reuters, Brent oil reached its highest level in more than two months on September 23rd at $77.25 a barrel, up to $1.06, or 1.4%. Due to insufficient storage inventories, natural gas prices increased by 100% in the United States and 280% in Europe this year. The resurgence of the oil and gas industry is, in turn, helping the renewable energy sector.

As the need to confront the climate calamity by lowering carbon emissions becomes more publicly recognized, renewable energy is becoming increasingly appealing to investors. According to statistics from Bloomberg, investors put $174 billion into renewable energy technology and firms in the first half of 2021. Furthermore, solar project investment climbed by 9% to $78.9 billion.

By 2026, the worldwide solar energy industry is estimated to reach $223.3 billion, growing at a compound annual rate of 20.5%. Due to decreased production and maintenance costs, the solar energy sector is seeing the increased acceptance of residential, commercial, and community solar energy generation and application. Furthermore, the availability of a substantial federal solar tax credit, such as the solar Investment Tax Credit (ITC), encourages more homes to transition to solar energy. Analysts recommend that we should not only buy these stocks now but hold onto them for the foreseeable future.

Let’s take a brief look at three solar energy stocks that the experts consider to be wise and innovative portfolio choices:

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First Solar Inc (FSLR)

Few firms have survived as long as First Solar (FLSR) in the solar sector. Since its inception in 1999, the thin-film solar panel manufacturer has been a market leader in the solar industry. FLSR expects to increase output over the next three years as the solar sector grows and the demand for solar panels rises. And it should help the corporation maintain its industry-leading profitability. The solar market will undoubtedly become more volatile over the next 30 years, but FLSR has demonstrated its capacity to adapt and thrive.

It is evident that as the use of solar energy increases, so will the company’s size and profitability. It’s scheduled to report earnings again very soon (November 5th), but for what it’s worth, its last quarterly earnings report beat EPS projections by 39.40% and revenue expectations by 1.41%. The forecasts for FLSR look good, with solid year-over-year numbers and projected annual growth. The price target for FLSR from those who provide 12-month predictions is 102.00, with a high of 127.00 and a low of 61.00. The median is currently down 6.32% from its last price, and this does not contend with the fact that analysts agree to buy and hold shares of FLSR.

Brookfield Renewable Partners (BEP)

The expansion of renewable energy capacity is a long-term worldwide trend. Brookfield Renewable (BEP) provides power to customers worldwide using renewable energy sources, including solar and wind. BEP is a method to play it through fiscally disciplined, competent capital allocators. BEP management aims to give investors overall returns of 12% to 15%, with an annual dividend increase of 5% to 9%. Brookfield Renewable shares have outperformed management’s aim over the last three years, as the usage of renewable energy assets has become increasingly popular.

BEP announced a $0.13 EPS in the second quarter of 2021, below projections of $0.17. Nonetheless, sales in the second quarter were $1.02 billion, up from $942 million in the second quarter of 2020, and revenue projections were $90.58 million higher. In the last 12 months, the stock has increased by 25%. The company reports earnings again on November 5th, but in the meantime, is just a little shy of boasting a billion dollars in revenue. BEP currently pays an annual dividend of $1.22, at 3.17%. The consensus price target for BEP from analysts that provide 12-month predictions is 44.00, with a high estimate of 53.00 and a low of 40.00. The estimate is up 15.76% from its previous price, and the consensus is to buy and hold BEP.

Sunrun Inc (RUN)

Sunrun, Inc. (RUN) specializes in the design, development, installation, sale, ownership, and maintenance of home solar energy systems. Through its direct-to-consumer channel, it provides solar service packages and installs solar energy systems for homes. Monthly leases, full-amount leases, buy systems, and monthly loans are all available through the company. Edward H. Fenster, Robert N. Kreamer, and Lynn M. Jurich started the firm in January 2007, and it is based in San Francisco, CA. According to RUN’s second-quarter report, the company’s systems have successfully offset more than 2.5 million metric tons of carbon dioxide in the previous twelve months.

RUN‘s revenue increased by 121% to $401.2 million in the second quarter, beating revenue projections by $35.13 million, or 9.60%. RUN reports again on November 5th (along with the other two companies listed), but in the meantime shows us $413.7 million in revenue. Although it doesn’t currently pay a dividend, RUN’s year-over-year financials are sound, and the EPS/Revenue growth forecasts from analysts look great, both quarterly and annually. RUN has a consensus price target of 78.50 among analysts that provide 12-month price estimates, with a high of 91.00 and a low of 28.10. The median is up an impressive 47.56% from its previous price. RUN also boasts a solid buy rating from analysts.