Solar Stocks Didn't Heat Up Last Week
There was a time when investors could count on solar energy stocks jumping higher after a spike in oil prices.
As the costs for popular forms of energy increase, the heavy initial investments to get solar power going become easier barriers to overcome.
Well, what exactly happened last week, then? Oil prices hit a nine-month high. Investors began sizing up the winners in this kind of environment. Airline stocks -- and other sectors where costs and consumer actions can be stung by pesky crude upticks -- sold off on the news.
Surely the shining stars of solar would benefit? Well, not exactly. Let's take a look at some of the industry's players that suffered double-digit percentage drops during the shortened trading week.
|Feb. 24||Weekly Loss||My Watchlist|
|Yingli Green Energy (NYS: YGE)||$3.82||(19%)||Add|
|Trina Solar (NYS: TSL)||$7.80||(19%)||Add|
|First Solar (NAS: FSLR)||$35.58||(16%)||Add|
|SunTech Power (NYS: STP)||$3.06||(16%)||Add|
|Jinko Solar (NYS: JKS)||$7.81||(11%)||Add|
Source: Yahoo! Finance.
What exactly is going on here? Well, it doesn't help that key players continue to post disappointing quarterly results. Trina Solar was the latest company to post ho-hum financials. Module shipments may have posted a welcome sequential uptick, but revenue actually fell compared to its previous quarter. The culprit, naturally, is cascading prices. Even if this is what will ultimately make solar a more viable energy solution in the future, investors are growing disillusioned with shrinking margins in the near term.
This seems like an interesting time to be an opportunist who likes to see the bright side of things.
Sunny side up
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At the time this article was published Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.The Motley Fool owns shares of First Solar.Motley Fool newsletter serviceshave recommended buying shares of First Solar. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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