Aug 19, 2021 (WallStreetPR via Comtex) -- The solar energy industry continues to represent one of the most promising long-term investment opportunities according to many analysts as capital flows into funds dedicated to allocating toward sustainable energy solutions.
However, many of the stocks in the space have become crowded over the past couple years, especially in the run up to the Biden presidency last fall, with fund managers assuming a major shift in policy to aid in the expansion of the solar space.
That has left many potentially interesting opportunities behind as everyone chases the top group, with retail investors augmenting that momentum for a select few players.
For investors looking for a speculative opportunity, this is an interesting spot to look. Undervalued and underappreciated solar names may be overlooked gems with real prospects, especially as trillions flow into the industry from government and ESG funds.
That could imply some interesting things ahead for stocks like ReneSola Ltd. (NYS:SOL) , Maxeon Solar Technologies Ltd (NAS:MAXN) , Green Stream Holdings Inc (OTC:GSFI) , Sunworks Inc (NAS:SUNW) , Ascent Solar Technologies, Inc. (OTC:ASTI) , and Sunnova Energy International Inc (NYS:NOVA) .
(NYS:SOL) engages in the manufacture of solar wafers and modules. It operates through the following segments: Wafer, Cell and Module, and Solar Power Projects.
The Wafer segment includes manufacture and sales of monocrystalline and multicrystalline solar wafers and processing services. The Cell and Module segment involves in the manufacture and sale of PV cells and modules. The Solar Power Projects segment offers solar power project development, EPC services, and electricity.
ReneSola Ltd. (NYS:SOL) recently announced the signing of a strategic partnership agreement with Emeren, a London, United Kingdom-based project developer specialized in the development of renewable energy power plants in Europe and other international markets, to co-develop ground-mounted solar projects in Italy, with a pipeline of several transactions scheduled for 2021. As part of the agreement, ReneSola Power and Emeren will develop projects in a broad range of sizes across the country, with a target of reaching 110 MW shovel-ready projects by 2022. The two companies expect the collaboration to further strengthen their presence in the Italian market.
Mr. Josef Kastner, CEO of ReneSola Power European Region, commented, "We are excited to work together with Emeren. ReneSola Power is committed to accelerating solar development in Europe, and together with Emeren, we expect to bring a range of high-quality projects to the Italian market, enabling further growth in the region."
Even in light of this news, SOL has had a rough past week of trading action, with shares sinking something like -15% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -16%.
ReneSola Ltd. (NYS:SOL) managed to rope in revenues totaling $22.8M in overall sales during the company's most recently reported quarterly financial data - a figure that represents a rate of top line growth of 7.6%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($301M against $51.1M).
(OTC:GSFI) is a unique player in the space, given its focus on community solar energy systems and rooftop solar powered greenhouses that stand to maximize systemic efficiency from many angles.
This is a potentially ideal solution to urban waste - which includes space, water, energy, and air. If there's one thing the ESG crowd can get behind, it's sustainability. And waste is the enemy of sustainability. Smart solutions that eliminated wasted energy, water, space, and air seem right up the ESG alley.
Green Stream Holdings Inc (OTC:GSFI) announced last monththat it is launching its plan on using the solar green houses to create micro grids in urban areas. In fact, it has already made big progress in this direction with surveys underway at specific sites.
CEO James DiPrima stated: "We are targeting high energy cost urban areas we overlay our footprint on another potentially wasted resource hiding in plain sight in cities across the nation: empty rooftops, overpasses, and canopies.Our Solar Greenhouses take under-utilized space and turns them into sustainable inner city farms, harnessing collected solar energy and runoff water to become an oasis for healthy produce.
The stock has been moving under the radar and hasn't gotten much attention, which is so often the case for OTC names. But it has tangible catalysts moving forward and may be worth a look, especially if the tape starts to show signs of accumulation.
Green Stream Holdings Inc (OTC:GSFI) has an interesting case to make. As its CEO continued: "Roofs with vegetation are widely believed to extend roof life, conserve energy, and reduce stormwater runoff and air pollution; new studies show they can also boost the performance of solar panels. Plants reduce a roof's contribution to the urban heat-island effect by lowering the surrounding air temperature throughevaporation; this cooling can also make photovoltaic panels perform more efficiently. Plants also reduce airborne pollutants and dust particles, allowing the panels to absorb more sunlight. Now we have the ability to significantly impact the communities we serve with the opportunity for multiple streams of income from each project, from providing electricity for the public utilities, to growing fresh fruits and vegetables for the local restaurants. Growing season is 24 -7/365 in our climate-controlled roof top greenhouses powered by solar arrays, and with dual-benefit: storing power during the day for use at night and utilizing excess power to sell back to communities as an energy source."
(NAS:SUNW) bills itself as a company that engages in the provision of photovoltaic based power systems for the residential, commercial, and agricultural markets. Its services include design, system engineering, procurement, project installation, construction, grid connection, warranty, system monitoring, and maintenance.
This is a potentially undervalued name that hasn't received much attention despite some interesting strategic moves over recent months helping to fuel growth.
Sunworks Inc (NAS:SUNW) recently announced financial results for the second quarter ended June 30, 2021. On April 8, 2021, Sunworks, acquired Solcius, LLC, a privately held, rapidly growing residential solar company, for $51.8 million, creating a national solar power provider with a presence in 12 states. The financial results for the second quarter, including revenue of $32.1 million compared to $9.7 million in the second quarter last year, include the operating results of Solcius, since the acquisition, with no corresponding contribution in the year-ago period.
"With the integration of Solcius largely completed, we have made meaningful progress in improving all facets of our organization," commented Gaylon Morris, Chief Executive Officer of Sunworks. "Solcius now processes all new residential projects, and we are benefiting from their scale and expertise. The increased availability of batteries is enabling us to process several jobs that have been held in backlog since 2020. Additionally, Solcius is now offering battery storage as an add-on in all markets, giving consumers a more comprehensive solution and increasing our revenue opportunity. We have expanded to the Laredo, Texas market and plan to expand into Dallas in September and Houston by the end of the year. In line with trends in this market, we are anticipating strong year-over-year growth in residential revenue."
While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn't been the type of action SUNW shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -8% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -17%.
Sunworks Inc (NAS:SUNW) managed to rope in revenues totaling $6.2M in overall sales during the company's most recently reported quarterly financial data - a figure that represents a rate of top line growth of -50.1%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($82.8M against $16.7M).
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