Solar stocks are on every investor’s mind in the run-up to the 2024 election on Nov. 5. Before the election, investors and experts are looking for policy measures to sustain the secular increase in solar adoption and associated stocks in the process.
Low prices, technical innovations, and government policies that support solar power are driving the worldwide solar power industry. This market will be worth $273 billion in 2024 and possibly increase to roughly $436 billion by 2032.
The Inflation Reduction Act is a milestone for long-term solar and storage tax advantages and domestic solar manufacturing investments. Its 30% federal tax credit for residential solar systems, retroactive to Jan. 1, 2022, has dropped home and business installation prices, promoting solar adoption.
Under the $7 billion Biden-Harris Solar for All Program, low-income homes get solar energy. The Greenhouse Gas Reduction Fund aims to lower energy expenses for over 900,000 low-income families.
The U.S. Bureau of Land Management has also advanced 6 GW of solar projects to power 2 million homes. Growth in transaction volume is expected to push the U.S. renewable energy tax credit market to $25 billion in 2024.
As a result, North America led the market with 41% in 2023; thus, our three buy-rated solar companies are from there. These solar stocks with double-digit upsides are in prime position for summer 2024 and beyond.
First Solar (FSLR)
First Solar (NASDAQ:FSLR) just blew past earnings forecasts, reporting EPS of $3.25 over the projected $2.69. Rising 24% from $810 million last year, quarterly revenues exceeded projections of $941.5 million to reach $1.01 billion. Annual net income climbed from $171 million to $349.4 million. The corporation has 75.9 gigabytes ordered through 2030; net bookings for 2024 are 3.6 gigabytes.
Apart from the exceptional Q2’24 earnings report, First Solar debuted the Series 7 photovoltaic module, which enhances efficiency, performance and solid financials. This module uses amazing thin-film technology for distributed and utility-scale generating.
Building a $1.1 billion Iberia Parish facility, FSLR, by the first half of 2026, is hoping to boost U.S. production capacity to 14 GW and global capacity to 25 GW.
Analysts see a potential upside of 36% from $210.89. FSLR is also bullish on its future, reiterating its guidance of $13 to $14 per share and volume sales of 15.6 to 16.3 gigabytes despite worries over the effect of the U.S. presidential election on the solar business.
Brookfield Renewable Partners (BEP)
Brookfield Renewable Partners (NYSE:BEP), one of the biggest publicly listed green power platforms in the world with more than 31,600 megawatts of total energy, is one of the most fairly priced solar stocks, down 18% over the previous year.
BEP has a consensus recommendation of “Strong Buy” and a price target of $31.42, a potential upside of 32% from the latest closing of $23.66. This highlights its excellent development pipeline of 131,900 megawatts of renewable power assets.
Brookfield Renewable reported a 23 per share loss for Q1 2024, below analyst expectations of 1 cent per share. However, BEP’s quarterly sales were $875 million, above the projected $828.39 million. BEP stands out for its 6% yield, substantially higher than the utility sector average of 3%.
Brookfield is also in exclusive discussions to purchase a controlling share in French renewable energy provider Neoen. The acquisition values Neoen at $9 billion by buying 53.32% from Impala and the Fonds Stratégique de Participations for €39.85 apiece. Brookfield must tender convertible bonds and remaining shares after the initial acquisition.
Brookfield hopes to boost its green energy sources with this acquisition. Neoen has about 4 GW of operating or under-construction assets and targets 10 GW by 2030.
Array Technologies (ARRY)
Array Technologies (NASDAQ:ARRY) rounds off our list of solar stocks with a price target of $17.66. This potentially translates into an upside of 69% from its current price of $10.43, which is not surprising considering how well it performed in Q1 2024.
Analysts thought ARRY would lose 2 cents, but the company, famous for its utility-scale solar tracker systems, reported a profit of 6 cents, which was more than 350% higher than expected; ARRY also reported a record gross margin of 35.9%.
ARRY is notably responsible for delivering DuraTrack solar tracks for a 750 MWdc Ohio solar project, one of the biggest solar energy projects in the United States. The project will run sustainable energy-powered 116,000 Ohio homes yearly and help Array’s Midwest footprint be stronger.
Moreover, Array is working with Aluminum Products Company to encourage MENA’s and Saudi Arabia’s sustainable energy sources. This cooperation promotes Saudi Arabia’s Vision 2030 and strengthens its global image by increasing renewable energy generation.
ARRY has also extended its long-term cooperation with EAC by funding around $35 million to support EAC’s development of its Michigan business. This development enhances Array’s commitment to a sustainable local supply chain by extending its U.S. manufacturing and metal extrusion capabilities. Additionally, Array is developing a $50 million solar project in Albuquerque, New Mexico.
On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.