Why SunPower's Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of SunPower (NAS: SPWR) jumped 17% today after the company was upgraded by an analyst.
So what: Citigroup analyst Timothy Arcuri said he thinks the industry is near a bottom and upgraded SunPower to buy from a hold rating. He also upgraded shares of Yingli Green Energy (NYS: YGE) and has a buy rating on shares of Trina Solar (NYS: TSL) .
Now what: Solar stocks have been crushed in recent weeks, and analysts and investors are starting to see some value in the industry right now. We'll get a better look at how SunPower in particular is going when it reports earnings on Thursday, so I'm a little worried we're putting the cart before the horse here. If SunPower can improve margins over the fourth quarter it will be a great buy, but today's pop could be negated if results are disappointing. Short-term, I see buying this move as risky, although SunPower is my top solar stock long-term.
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At the time this article was published Fool contributorTravis Hoiumowns shares of SunPower in a personal and a managed account. You can follow Travis on Twitter at@FlushDrawFool, check out hispersonal stock holdingsor follow his CAPS picks atTMFFlushDraw.The Motley Fool owns shares of Citigroup. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
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