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July 19, 2021, 8:35 a.m. EDT

Solar Stocks in Focus: Consolidation Spells Opportunity (CSIQ, SEDG, GSFI, SOL, SPWR, RUN, ARRY, JKS)

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Jul 19, 2021 (WallStreetPR via Comtex) -- Solar energy stocks have been consolidating over recent months, potentially providing a value opportunity for market participants looking to allocate new capital to names like Canadian Solar Inc. /zigman2/quotes/205481506/composite CSIQ +1.19% , Solaredge Technologies Inc /zigman2/quotes/207754270/composite SEDG -1.98% , Green Stream Holdings Inc /zigman2/quotes/202347924/composite GSFI 0.00% , ReneSola Ltd. /zigman2/quotes/208672473/composite SOL -0.43% , SunPower Corporation /zigman2/quotes/200243424/composite SPWR +0.18% , Sunrun Inc /zigman2/quotes/205021014/composite RUN -1.56% , Array Technologies Inc /zigman2/quotes/221735763/composite ARRY -5.65% , and JinkoSolar Holding Co., Ltd /zigman2/quotes/207601099/composite JKS +2.62% .

The solar energy industry had a breakout year in 2020 in the developed world, setting new records for expansion in places like the US market, despite the carnage of the pandemic recession.

That's an important data point because it suggests the growing tide of capital flowing into the space is robust and unwavering, and independent of the short-term debt cycle or the business cycle. In other words, it isn't slowing down even when people are at their least speculative up and down the funding chain.

That's important because it derisks the structural investment thesis in the space, clearing the way for more conservative fund managers to up their exposure. We take that kind of dynamic very seriously, especially when a space with a solid long-term thesis is pulling back and consolidating on the longer-term charts.

With that in mind, we take a closer look below to some of the more interesting stocks and stories defining the solar space.

Canadian Solar Inc. /zigman2/quotes/205481506/composite CSIQ +1.19% is one of the best executers in the solar space, quarter in and quarter out. The management team is frequently lauded as one of the best in the business.

The company engages in the manufacture of solar photovoltaic modules and provides solar energy solutions. It operates through the Module and System Solutions (MSS) and Energy segments. The MSS segment involves in the design, development, manufacture, and sales of solar power products and solar system kits, and operation and maintenance services. The Energy segment comprises primarily of the development and sale of solar projects, operating solar power projects and the sale of electricity.

Canadian Solar Inc. /zigman2/quotes/205481506/composite CSIQ +1.19% recently announced it has signed a 10-year power purchase agreement (PPA) with Centrica Energy Trading A/S for two solar power projects totaling 12 MWp in Italy. Centrica Energy Trading is a leading provider of energy management and optimization services, operating in power, gas and energy certificate markets across Europe.

Dr. Shawn Qu, Chairman and CEO of Canadian Solar commented, "I am proud to announce our second 12 MWp PPA in Italy in less than 2 months. The two solar projects signed with Centrica are part of a 1.3 GWp portfolio of subsidy-free solar assets we are developing in Italy, with various counterparties, as we execute on our portfolio management strategy and expand our presence in this market. We are proud to work on this opportunity with Centrica, one of the leading energy traders in Europe, and look forward to collaborating further."

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 CSIQ 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.

Canadian Solar Inc. /zigman2/quotes/205481506/composite CSIQ +1.19% managed to rope in revenues totaling $1.1B in overall sales during the company's most recently reported quarterly financial data — a figure that represents a rate of top line growth of 31.9%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($1.5B against $3.9B, respectively).

Solaredge Technologies Inc /zigman2/quotes/207754270/composite SEDG -1.98% is a solar play working to provide inverter solutions. The firm operates through its Solar and All Other segments.

The Solar segment includes the design, development, manufacturing, and sales of an inverter solution designed to maximize power generation. The All Other segment includes the design, development, manufacturing and sales of UPS products, energy storage products, e-Mobility products, and automated machines. Its products and services include photovoltaic inverters, power optimizers, photovoltaic monitoring, software tools, and electric vehicle chargers.

Solaredge Technologies Inc /zigman2/quotes/207754270/composite SEDG -1.98% most recently announced its financial results for the first quarter ended March 31, 2021, including news of revenues of $405.5 million, revenues from solar products of $376.4 million, GAAP gross margin of 34.5%, GAAP gross margin from sale of solar products of 38.3%, and Record non-GAAP gross margin from sale of solar products of 39.7%.

"We are happy to report our first quarter results, representing continued growth in our solar business across geographies and segments," said Zvi Lando, CEO of SolarEdge. "We are particularly pleased with our operational performance this quarter, which will enable us to meet the continued increase in demand for our residential and commercial products worldwide. This quarter, we also began delivering full powertrain kits for the e-Mobility sector in Europe in line with our growth strategy beyond solar."

Even in light of this news, SEDG has had a rough past week of trading action, with shares sinking something like -12% 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.

/zigman2/quotes/205481506/composite
US : U.S.: Nasdaq
$ 36.71
+0.43 +1.19%
Volume: 993,291
Oct. 15, 2021 4:00p
P/E Ratio
47.14
Dividend Yield
N/A
Market Cap
$2.19 billion
Rev. per Employee
$272,154
loading...
/zigman2/quotes/207754270/composite
US : U.S.: Nasdaq
$ 299.49
-6.04 -1.98%
Volume: 801,983
Oct. 15, 2021 4:00p
P/E Ratio
119.05
Dividend Yield
N/A
Market Cap
$15.65 billion
Rev. per Employee
$459,758
loading...
/zigman2/quotes/202347924/composite
US : U.S.: OTC
$ 0.02
0.00 0.00%
Volume: 1.29M
Oct. 15, 2021 3:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.63 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/208672473/composite
US : U.S.: NYSE
$ 6.98
-0.03 -0.43%
Volume: 715,669
Oct. 15, 2021 4:00p
P/E Ratio
35.09
Dividend Yield
N/A
Market Cap
$478.86 million
Rev. per Employee
$500,020
loading...
/zigman2/quotes/200243424/composite
US : U.S.: Nasdaq
$ 27.54
+0.05 +0.18%
Volume: 2.63M
Oct. 15, 2021 4:00p
P/E Ratio
11.52
Dividend Yield
N/A
Market Cap
$4.76 billion
Rev. per Employee
$511,286
loading...
/zigman2/quotes/205021014/composite
US : U.S.: Nasdaq
$ 48.64
-0.77 -1.56%
Volume: 7.27M
Oct. 15, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$10.02 billion
Rev. per Employee
$108,493
loading...
/zigman2/quotes/221735763/composite
US : U.S.: Nasdaq
$ 18.87
-1.13 -5.65%
Volume: 8.67M
Oct. 15, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.53 billion
Rev. per Employee
$2.24M
loading...
/zigman2/quotes/207601099/composite
US : U.S.: NYSE
$ 51.77
+1.32 +2.62%
Volume: 1.76M
Oct. 15, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.47 billion
Rev. per Employee
$208,923
loading...
/zigman2/quotes/205481506/composite
US : U.S.: Nasdaq
$ 36.71
+0.43 +1.19%
Volume: 993,291
Oct. 15, 2021 4:00p
P/E Ratio
47.14
Dividend Yield
N/A
Market Cap
$2.19 billion
Rev. per Employee
$272,154
loading...
/zigman2/quotes/205481506/composite
US : U.S.: Nasdaq
$ 36.71
+0.43 +1.19%
Volume: 993,291
Oct. 15, 2021 4:00p
P/E Ratio
47.14
Dividend Yield
N/A
Market Cap
$2.19 billion
Rev. per Employee
$272,154
loading...
/zigman2/quotes/205481506/composite
US : U.S.: Nasdaq
$ 36.71
+0.43 +1.19%
Volume: 993,291
Oct. 15, 2021 4:00p
P/E Ratio
47.14
Dividend Yield
N/A
Market Cap
$2.19 billion
Rev. per Employee
$272,154
loading...
/zigman2/quotes/207754270/composite
US : U.S.: Nasdaq
$ 299.49
-6.04 -1.98%
Volume: 801,983
Oct. 15, 2021 4:00p
P/E Ratio
119.05
Dividend Yield
N/A
Market Cap
$15.65 billion
Rev. per Employee
$459,758
loading...
/zigman2/quotes/207754270/composite
US : U.S.: Nasdaq
$ 299.49
-6.04 -1.98%
Volume: 801,983
Oct. 15, 2021 4:00p
P/E Ratio
119.05
Dividend Yield
N/A
Market Cap
$15.65 billion
Rev. per Employee
$459,758
loading...
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