Why SolarCity's Shares Popped Today

Why SolarCity's Shares Popped Today

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 SolarCity jumped as much as 13% today after the company was upgraded by analysts at Goldman Sachs .

So what: Goldman's analysts added SolarCity to their "conviction buy" list and put an $80 price target on the stock. They like the company's exposure to downstream solar and SolarCity's dominant position in the residential solar market, which still has plenty of growth opportunities.

Now what: SolarCity is definitely one of the top solar stocks, but buying just because Goldman Sachs says so isn't a wise move today. In fact, click here to read about how little Wall Street's analysts actually care about picking great stocks and how poor their performance is. These bumps on analyst upgrades often don't last long and I'd be leery of the move today. SolarCity is a great company but it'll be generating value for shareholders, not analyst opinions, that will drive the stock long term and that's what investors should be focused on.

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The article Why SolarCity's Shares Popped Today originally appeared on Fool.com.

Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs. It recommends and 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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Originally published