Despite experiencing a decline in 2022, solar stocks continue to hold immense promise and potential as an explosive sector in the financial market. As such, investors should closely monitor these stocks, as companies in the solar industry are projected to play a significantly larger role in global energy production in the future.
In that light, on June 29, Finbold analyzed three solar stocks that financial experts believe have upside potential over the next 12 months.
First Solar (NASDAQ: FSLR)
Over the past three months, 29 analysts offered their ratings for First Solar’s (NASDAQ: FSLR) stock, with 11 experts seeing FSLR as a ‘strong buy,’ 3 recommending a ‘buy,’ and 12 advising a ‘hold.’ At the same time, 1 analyst thinks the stock is a ‘sell,’ while 2 see it as a ‘ strong sell.’ Based on these views, First Solar’s shares have a consensus rating of ‘buy,’ on TradingView.
Picks for you
Additionally, 21 strategists provided their 12-month price forecasts for FSLR, with an average price target of $221.29, implying a potential upside of more than 20% from the current stock price.
First Solar stock price analysis
At the time of publication, First Solar’s shares were standing at $184.22, after climbing 0.82% on June 28.
Over the past week and month, the stock fell more than 1% and 8%. During the previous 30 days, FSLR experienced a significant trading range of $177.14 to $210.37.
Year-to-date (YTD), the company’s shares remain in the green, up around 22%.
This YTD share price surge makes FSLR one of the strong performers in the sector, outperforming the broader S&P 500 index during that period.
First Solar stands out from other solar panel manufacturers because it focuses on more sophisticated thin-film photovoltaic, rather than on classic crystalline silicon panels.
Even though the stock became somewhat expensive in recent months, First Solar’s earnings turned positive in Q1 2023, igniting renewed optimism among investors.
Daqo New Energy (NYSE: DQ)
Daqo New Energy (NYSE: DQ) is a China-based company that engages in the production of monocrystalline silicon and polysilicon – materials that are primarily used in solar photovoltaic systems. With one of the lowest cost structures, Daqo is one of the solar companies responsible for China’s domination in the sector.
Over the past 90 days, 13 financial strategists analyzed DQ shares, giving the stock a consensus rating of a ‘buy.’ This is based on 5 analysts advising a ‘strong buy,’ 3 suggesting a ‘buy,’ and 4 viewing it as a ‘hold.’ Meanwhile, only 1 financial expert thinks DQ is a ‘strong sell.’
The average 12-month price target for Daqo shares stands at $56.72 at the moment, which is 51% higher than the stock’s present price level.
Daqo New Energy stock price analysis
At the time of writing, Daqo’s US-listed shares were trading at $37.55, up around 0.2% on the day.
The company’s stock fell around 4.2% on the weekly chart, and roughly 2.7% on the month.
Since the start of the year, DQ shares are in the red by about 4.5%.
In recent years, China has become a leader when it comes to green energy technology development. Although there is a myriad of promising and innovative players in the solar energy industry in China, Daqo is among those companies at the forefront of this market’s growth and is easy for US investors to access due to its shares also being listed on the New York Stock Exchange (NYSE).
While DQ shares have come under slight pressure this year, it remains one of the best solar stocks to monitor as it remains a soundly profitable company with a market cap of more than $3 billion and revenue of over $4.5 billion.
SolarEdge Technologies Inc (NASDAQ: SEDG)
SolarEdge (NASDAQ: SEDG) is an Israeli company that focuses on the production of inverters and power systems used for solar installations. Today, it is the biggest inverter company by revenue, delivering over 4.5 million inverters to date.
Like other leaders in this market, SolarEdge experienced rapid growth since its inception, with a net acceleration in more recent years.
On TradingView, SEDG shares carry a consensus rating of a ‘buy,’ based on 36 analysts’ predictions over the past three months. Over that period, 23 financial experts offered a ‘strong buy’ rating for the stock, 4 viewed it as a ‘buy, and 8 recommended a ‘hold.’ On the flip side, only 1 strategist said SEDG is a ‘strong sell.’
Meanwhile, based on 31 strategists’ forecasts, the stock’s 12-month average price target currently stands at $366.36, implying a potential upside of more than 42% from the latest stock price.
SolarEdge stock price analysis
On Wednesday, June 28, shares of SolarEdge Technologies closed at $257.94, up more than 1% in the past 24 hours.
Over the past month, SEDG stock price plummeted by more than 13%, experiencing a volatile trading range during that period from $235.50 to $300.41.
Since the beginning of the year, the stock fell by around 12%.
Even though its performance in the stock market is yet to impress, SolarEdge saw significant growth when it comes to its underlying financials, with revenue surging 35% in 2021 and 58% in 2022.
Conclusion
With the Biden administration setting ambitious goals for renewable energy, including generating 45% of the nation’s energy needs from solar power by 2050, the future of solar stocks remains bright.
As solar energy accounted for just 4% of total power generation in the US in 2020, the sector holds immense growth potential, leaving plenty of space for investors to anticipate and tackle exciting opportunities in this dynamic and rapidly expanding industry. Wall Street sets bullish 1-year price targets for FSLR, DQ, and SEDG solar stocks.
Buy stocks now with Interactive Brokers – the most advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
