London, UK, 5th Feb 2022, ZEXPRWIRE, “Green energy,” as a buzzword across many sectors of the economy, has been somewhat lackluster on Wall Street. Recently financial analysts have given top ratings to very few green-energy stocks; clearly, it’s still not easy being green–although its potential for future success is great!
Grand Pacific Trade Broker Adam Doubek Says Solar technology is one form of green energy, and solar stocks are likely to be the next gold rush. As with any mining operation, it’s important to look at regions where there is significant potential for success; that means looking for real growth rather than just an industry boom. The most attractive green energy companies right now are those that have steady demand (and growth) in their particular region. It also helps if they’re highly profitable, which many green-energy companies currently aren’t–yet!
SunPower Corp (NASDAQ: SPWR)
Among green tech players, SunPower Corp (NASDAQ: SPWR) stands out as a clear market leader by these metrics; its skyrocketing growth numbers make it one of the most promising investments on Wall Street right now.
SunPower Corp (NASDAQ: SPWR) is a green-energy company that develops and manufactures solar panels, and it has led the industry since 1981; in fact, its panels are used by NASA on space missions. A key driver of growth for SunPower is worldwide demand for residential and commercial solar power systems, which increased 12 percent in 2011 and 25 percent in 2010. The company currently leads the market in high efficiency solar capacity with 19.8 percent market share despite releasing only 17-18 percent of its production to market each year.
SunPower Corp (NASDAQ: SPWR) also leads other companies in global shipments of its technology at 309 megawatts, or nearly 10 percent of worldwide shipments, primarily because many other companies have shifted their resources away from the solar market and toward wind power.
SunPower Corp (NASDAQ: SPWR) has projects in Europe, North America, Japan, and Australia; it is currently implementing a “build out plan” to increase its prominence in Latin American and South African solar markets. The company recently announced an agreement with Eurus Energy Holdings Corporation for $16.3 million in capital that will allow SunPower to expand into commercial-scale projects in Japan and also fund the deployment of 1 megawatt of rooftop solar panels on commercial buildings across Japan–which should prove very lucrative considering the country’s push toward commercial green energy. Furthermore, SunPower plans to begin work on its first large project in Brazil this year using domestically manufactured components to further support the country’s solar market.
SunPower Corp (NASDAQ: SPWR) is also at the forefront of several important developments in the solar industry such as building-integrated photovoltaics, or BIPV, which turns buildings into power plants, and its recent acquisition of Power Light, a leading developer of solar electric systems for homes and businesses. SunPower is now looking to become an integrated developer, seller, and financier of solar energy solutions–something that will help it compete with other companies that have bought their way into this lucrative corner of the market. For example, SolarCity Corp (NASDAQ: SCTY) has seen its stock price soar due to attention paid to this group by investors, although there are concerns that the IPO market is overheating.
SunPower Corp (NASDAQ: SPWR) has a solid balance sheet with $541 million in cash and only $42 million in debt, which means it can be aggressive in pursuing opportunities to expand its global footprint, but this also makes it overvalued at current levels. Analysts are looking for 19.3 percent revenue growth this year with earnings growing at 22.6 percent–which would provide investors with a 31-percent return on their investment since the beginning of 2012. This could certainly be considered an attractive level of growth, but SunPower’s P/E ratio is currently 38, which seems high when compared with other green tech players in the industry. These issues point to volatility ahead for SunPower Corp (NASDAQ: SPWR), but the company’s solid position in a growing market certainly makes it an interesting play for investors, especially considering its current share price.
SunPower reports first-quarter earnings on Thursday after the close of trading; analysts expect a loss of 18 cents per share, which would be a dramatic improvement from the company’s 26-cent loss during the same quarter last year.
So, it seems like this stock is doing well. Maybe not as well as SolarCity (NASDAQ: SCTY), but it’s definitely making headway. However, I am cautious on this stock because Nevo says that SunPower has issues with its P/E ratio and is overvalued; this makes me think the market will be disappointed in Thursday’s earnings report and pull back on the price of SPWR.
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