SolarCity Leads Renewable-Energy Stocks Today

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Stocks are moving slightly higher today based mostly on relief that the U.S. isn't defaulting on its debts today. The Dow Jones Industrial Average is flat in late trading, but it would be up if not for IBM's 7% drop after earnings, pulling down the price-weighted index.

Energy stocks are mixed today after oil dropped $1.60 to near $100 per barrel in trading today. Oil has declined steadily since peaking at more than $110 per barrel in late August, and traders are worried that damage done from the government shutdown could negatively impact demand. But the drop in oil hasn't hurt renewable-energy stocks today.

SolarCity jumped as much as 9.8% in early trading today, and as of 3:50 p.m. EDT the stock is still up 4.3%. Shares ran up following a stock and debt offering yesterday -- an unusual reaction, because the move was dilutive to current shareholders.

The reason investors are still excited about the stock, even after dilution, is really last week's earnings guidance. Management expects to install 278 megawatts this year and between 475 MW and 525 MW next year, up to 89% growth year over year. The stock has rallied this week and is up an incredible 360% so far this year.

SCTY Total Return Price Chart

SCTY Total Return Price data by YCharts.

We'll find out more about SolarCity's financial position when the company announces earnings on Nov. 6.

Real Goods Solar bounced an incredible 39%, outshining its much larger rival. Generally speaking, what's good for SolarCity should be good for Real Goods Solar, although it isn't growing as aggressively in solar leases. The company installed just 5.6 MW of solar last quarter, up 17.8% from a year ago but well behind the 53 MW SolarCity installed.

A stock pop doesn't make it a good buy, but with the retail and commercial solar markets growing rapidly, this is a stock to watch in the solar industry.

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The article SolarCity Leads Renewable-Energy Stocks Today originally appeared on

Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool owns shares of SolarCity. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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