First Solar's most recent trend suggests a bullish bias. One trading opportunity on First Solar is a Bull Put Spread using a strike $86.00 short put and a strike $81.00 long put offers a potential 52.91% return on risk over the next 17 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $86.00 by expiration. The full premium credit of $1.73 would be kept by the premium seller. The risk of $3.27 would be incurred if the stock dropped below the $81.00 long put strike price.
The 5-day moving average is moving up which suggests that the short-term momentum for First Solar is bullish and the probability of a rise in share price is higher if the stock starts trending.
The 20-day moving average is moving up which suggests that the medium-term momentum for First Solar is bullish.
The RSI indicator is at 60.74 level which suggests that the stock is neither overbought nor oversold at this time.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
LATEST NEWS for First Solar
3 Top Renewable Energy Stocks to Buy No Matter Who Wins the Election
Sun, 01 Nov 2020 12:00:00 +0000
Renewable energy stocks have had a resurgence in the last few months as the prospect of a more friendly presidential administration has enticed investors. Travis Hoium (SunPower): No matter who wins the election, the trend of more people putting solar panels on their roofs is going to continue gaining steam.
7 Clean Energy Stocks To Watch Ahead Of The U.S. Election
Fri, 30 Oct 2020 17:56:44 +0000
On speculation Joe Biden could win the election, clean energy stocks are pushing higher.
All as investors get swept up by the possibility he could win. Plus, he reportedly has a $2 trillion sustainable energy infrastructure plan that could make the U.S. carbon free by 2035.
“Assuming Joe Biden is elected and the Democrats have a majority in both houses of Congress, then investments in infrastructure stocks (or infrastructure ETFs) should receive a high priority,” says David Kass, Clinical Professor Finance at the University of Maryland’s Robert H. Smith School of Business. “Climate related opportunities in solar and wind power, batteries for electric vehicles and electric vehicle manufacturers should be explored.”InvestorPlace – Stock Market News, Stock Advice & Trading Tips
7 Cutting-Edge Biotech Stocks for Tomorrow
In fact, here are the top 7 clean energy stocks to keep an eye on:
iShares Global Clean Energy ETF (NASDAQ:ICLN)
ALPS Clean Energy ETF (BATS:ACES)
First Solar (NASDAQ:FSLR)
Enphase Energy (NASDAQ:ENPH)
SolarEdge Technologies (NASDAQ:SEDG)
Ballard Power Systems (NASDAQ:BLDP)
Plug Power (NASDAQ:PLUG)
At this point, no one is quite sure who could win. And I’m not about to share political opinions here because they have no place in this article. What I simply want to do is share some of the top clean energy stocks piquing interest on a potential Biden win.
Clean Energy Stocks to Watch: iShares Global Clean Energy ETF (ICLN)
Source: Shutterstock
The ICLN ETF gives investors exposure to companies producing energy from solar, wind and other renewable energy sources. Since June, the ETF has exploded from a low of $12 to current prices around $19.68. From here, I strongly believe it could run well above $25 a share as millions of people push for a greener future.
The other reason I like this and other ETFs is because you can own more for less. With the ICLN ETF for example, investors can gain exposure to dozens of clean energy stocks like First Solar, Enphase Energy, Vestas Wind Systems (OTC:VWDRY), Plug Power, Sunrun Inc. (NASDAQ:RUN), and Canadian Solar (NASDAQ:CSIQ). All for $19.64 a share.
In short, you can diversify among dozens of names, and pay a fraction of the cost of buying just a single share of each stock.
ALPS Clean Energy ETF (ACES)
Source: Shutterstock
With the ACE ETF, you can own dozens of clean energy stocks for $56.50 a share. Some of ACES top holdings include Tesla (NASDAQ:TSLA), Plug Power, Ballard Power Systems, Cree Inc. (NASDAQ:CREE), and Brookfield Renewable Partners (NYSE:BEP).
It’s another high-flying green trade that’s run from a July low of $37.50 to $56.50. From here, I believe the ETF could double, if not triple with patience.
That’s especially true, given its exposure to the green hydrogen opportunity.
7 Cutting-Edge Biotech Stocks for Tomorrow
Goldman Sachs is already calling green hydrogen a “once in a lifetime opportunity,” says Barron’s. They also note the addressable market could be worth up to $11.7 trillion in the next 30 years with the U.S., Asia and Europe leading the way.
First Solar (FSLR)
Source: IgorGolovniov / Shutterstock.com
First Solar has been just as explosive, running up from a July low of $50 on Biden speculation as well. After bottoming out at $60 in September, the stock has since climbed to $81.
FSLR is also flying high on news it will provide solar power to three General Motors (NYSE:GM) plants in the Midwest. Per GM Chief Sustainability Officer Dane Parker:
“As GM continues its transition to an all-electric, zero-emissions future, it is imperative that we also invest in a cleaner grid that can support everything — from our factories to our vehicles. Investments like these have increased access to renewable power, and with this deal we are exploring the next frontier of renewable energy, which integrate the principles of circularity and energy storage, among others.”
In addition, First Solar is set to release earnings on Oct. 27. Analysts are looking for EPS of 61 cents on sales of $693 million.
Enphase Energy (ENPH)
Source: IgorGolovniov / Shutterstock.com
Enphase is another explosive opportunity that’s popped from a June low of $40 to more than $99 a share. We could see higher highs here too.
It’s also quickly expanding its presence around the world. Not only did it just expand into the home energy market, it also entered into three solar distribution companies in Belgium and the Netherlands — Carbomat Group, Libra Energy and Solarclarity — further strengthening Enphase’s presence in the European solar market.
7 Cutting-Edge Biotech Stocks for Tomorrow
With regards to earnings, while year-over-year Q2 revenues were down 6.94%. the company did post record gross margins of 39.6% on a non-GAAP basis. The company is expected to post third quarter results on October 27 after the closing bell.
SolarEdge Technologies (SEDG)
Source: IgorGolovniov / Shutterstock.com
SolarEdge Technologies is an Israeli solar energy company that creates smart solar solutions that provides inverters, photovoltaic monitoring and power harvesting accessories. Since bottoming out around $70 in March, SolarEdge Technologies exploded to $269 a share. This is another name running off anticipatory momentum ahead of the elections.
In its most recent earnings report, both revenue and GAAP EPS beat expectations, by $12.3 million and 22 cents respectively. However, compared to the second quarter last year, revenue dropped 23% to $331.9 million.
While there were some negatives over the last year, the company and its stock have remained resilient. “This quarter, despite the challenges caused by COVID 19, we maintained healthy profitability while generating cash from operating activity,” said Zivi Lando, CEO of SolarEdge.
“Our global strength, and in particular our loyal customer base in the Netherlands, Germany, Italy and Australia, softened the decline in U.S. demand this past quarter. While the pandemic has created many operational challenges, I am confident in our financial strength and grateful for the trust of our customers and dedication of our employees which enable us to continue to focus on product innovation and execution of our long term plans even in these challenging times.”
Ballard Power Systems (BLDP)
Source: Pavel Kapysh / Shutterstock.com
Analysts love Ballard Power Systems. Over the last few weeks, Bernstein upgraded the stock to a buy with a $22 price target. TD Securities upgraded the stock to a speculative buy from a hold rating. And National Bank upgraded BLDP to a buy from a hold, as well.
“The push for hydrogen is global and gaining steam,” National Bank analyst Rupert Merer told Barron’s.
7 Cutting-Edge Biotech Stocks for Tomorrow
“Regulations have advanced in Europe and the U.S. to transition bus and trucks to zero emission. In China…a detailed hydrogen plan could come soon and target 1 [million] hydrogen vehicles by 2030.”
Plug Power (PLUG)
Source: Halfpoint/ShutterStock.com
Plug Power will source renewables energy from Canada’s Brookfield Renewables Partners and use it for the production of green hydrogen.
In addition, according to the company, “Plug Power customer demand for hydrogen has grown 10x in five years — nearly a 200% annual growth rate. From a market perspective, McKinsey expects hydrogen will provide 18% of global energy by 2050. As the world’s largest supplier and user of liquid hydrogen, we’re positioned as the forward-thinking company, leading the expansion of green hydrogen technologies while growing their use into a range of transportation and stationary power applications.”
“We’re projecting using more than 80 tons of hydrogen in 2024, and have made a commitment to achieve 50% green content,” they added.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities.
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The post 7 Clean Energy Stocks To Watch Ahead Of The U.S. Election appeared first on InvestorPlace.
Increased Uncertainty Presents A Huge Opportunity For Sunrun Stock
Fri, 30 Oct 2020 14:17:56 +0000
Amid a seasonally spooky October following a stellar quarterly run, is Sunrun (NYSE:RUN) worth buying today? Let’s see what’s happening off and on the price chart for RUN stock, then propose a stronger, risk-adjusted determination for investors.
Source: IgorGolovniov / Shutterstock.com
RUN shareholders enjoyed a sizzling (if not dizzying) rally this summer and into the fall. From July up to a peak and all-time-high share price of $82.42 on October 1, Sunrun soared higher by just over 175%.
Not bad, right? It’s absolutely true, especially compared to solid broader market gains on either side of 10% for the quarter.InvestorPlace – Stock Market News, Stock Advice & Trading Tips
Behind the unusually strong rally in RUN shares, it’s fairly common knowledge the solar industry has become a hot play in 2020. Along with alternative energy plays ranging from the largest of the large like EV manufacturer Tesla (NASDAQ:TSLA) to more speculative hydrogen outfits such as Plug Power (NASDAQ:PLUG), this expansive and diverse market has increasingly felt the love from Wall Street on the back of expectations of a Democratic White House and in-tow ‘greener’ energy initiatives.
7 Cutting-Edge Biotech Stocks for Tomorrow
Still, Sunrun’s stock performance stood out as an early achiever in the space.
Shares outpaced the Invesco Solar ETF (NYSEARCA:TAN) by almost three-to-one over for the quarter ending in September. RUN also crushed enviable rallies in heavily-traded peers First Solar (NASDAQ:FSLR), SolarEdge (NASDAQ:SEDG), Canadian Solar (NASDAQ:CSIQ) and many others. So what’s the deal?
The jumpstart RUN experienced could be attributed to the company’s announced buyout of rival Vivint Solar followed by the Justice Department’s ‘early termination’ of an antitrust waiting period. The deal combines the market’s two largest residential solar installers into one massive renewable energy giant. Cost synergies estimated at around $90 million may have been another factor at play, as Sunrun’s sales and marketing costs have been trending higher since 2017.
The Motley Fool theorizes investors may have partly bid shares up on Sunrun’s increased investment into virtual power plants. In a nutshell, as RUN introduces more energy storage systems it can combine and bid the platforms into competitive power markets. It’s potentially another revenue stream for the company’s thousands of installations each year.
October has been a different and more frightening story for many RUN investors though. The good news in this strategist’s estimation, the price action is actually less scary and resembles what happens consistently to even the best stocks.
RUN Stock Daily Price Chart
Source: Charts by TradingView
The fact is, all stocks correct. And those odds increase after sizable rallies. Even in healthy market environments, profit-taking will eventually make its mark on the price chart.
Technically, considering RUN stock’s October stumble of 36%, the loss in valuation is standard fare for a volatile stock of Sunrun’s caliber. Losses on either side of 30% during risk-on trading environments are routine. And in less benign market cycles, corrective declines of 40% and even 50% aren’t uncommon while the broader market peels off 5% to 10%.
It is what it is. And with the likes of the S&P 500 and Nasdaq Composite giving back 4% to 6% in September and roughly 1% to 2% in October, without oversimplifying matters, it’s likely as simple as that. Looking forward though, buying in the aftermath of RUN’s correction and today’s bullishly-oversold and well-supported candlestick signal is slightly more challenging.
There is next week’s election to consider. It nearly goes without saying the Presidency is going to a contested and drawn out event. Sunrun also has earnings. That raises the bar on uncertainty as a lot of moving parts beyond one or two numbers goes into how investors react to any given quarterly report. I’ll leave it at that, well almost.
Among other expectations, Wall Street’s analyst community is forecasting 2 cents per share on sales of $209 million from Sunrun when it reports November 6. More importantly, investors should be braced for significant gap risk which works both ways. And the way I see it, given where RUN has been, is right now on the price chart and potentially how things may or may not take shape going into the new year, the January $60 / $65 bull call spread looks about right when weighing the risks versus the potential rewards.
Stocks Owned: On the date of publication, Chris Tyler holds, directly or indirectly, positions in Plug Power (PLUG) but no other securities mentioned in this article.
Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. The information offered is based on his professional experience but strictly intended for educational purposes only. Any use of this information is 100% the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.
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The post Increased Uncertainty Presents A Huge Opportunity For Sunrun Stock appeared first on InvestorPlace.
First Solar Stock Is a Winner, But How Much Higher Can It Go?
Fri, 30 Oct 2020 01:29:34 +0000
The markets fell sharply on Wednesday, but it was of little consequence to investors of First Solar (FSLR). Shares took off after the solar-panel maker delivered a massive Q3 beat. Overall, FSLR shares are up 56% year-to-date. Q3 revenue increased year-over-year by 69.7% and by 44% from the previous quarter to hit $928 million, beating the estimates by $235.44 million. The company trounced the analysts’ bottom line forecast by reporting EPS of $1.45 vs. the Street’s $0.83.At 31.6%, gross margin was up 600 bp year-over-year and by a hefty 1,000 bp quarter-over-quarter, boosted by the fact productive capacity ran above 100% at all the company’s factories.As a result of the booming business, the company also resumed full-year guidance, withdrawn earlier this year due to the uncertain COVID-19 macro conditions.First Solar now expects full-year revenue between $2.6 and $2.9 billion which is in line with pre-Covid levels, while EPS is actually looking better. The company expects GAAP EPS in the range of $3.65 to $4.15, compared to the previous $3.25 to $3.75 estimate.Raymond James analyst Pavel Molchanov calls First Solar “large-scale, cost-competitive, and highly bankable.”Following the results, Molchanov reiterated an Outperform (i.e. Buy) rating on FSLR shares and boosted the price target from $80 to $90. However, after this year's share rally, his target implies a modest upside. (To watch Molchanov’s track record, click here)The analyst said, “First Solar is the only U.S.-based module supplier in the global top ten, and it is also the only one without direct Chinese exposure. The absence of concrete cost metrics makes it impossible to say with precision how First Solar's module costs compare with Chinese players, but our sense is that the company is in the industry's top quartile on gross margin. Vis-a-vis bankability, First Solar's cash-rich balance sheet amply compensates for its lack of a “big brother,” providing the financial flexibility to potentially initiate a share buyback for the first time ever.”Where does the rest of the Street side on this solar player? It appears mostly bullish, as TipRanks analytics demonstrate FSLR as a Moderate Buy. Out of 13 analysts tracked in the last 3 months, 7 suggest Buy, 5 say Hold, and only 1 recommends Sell. With a return potential of ~7%, the stock’s consensus target price stands at $93.33. (See First Solar stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
SunPower (SPWR) Q3 Loss Narrower Than Expected, Revenues Fall
Thu, 29 Oct 2020 15:07:03 +0000
SunPower's (SPWR) year-over-year decline in revenues in the third quarter can be attributed to lower revenues from solar power systems and residential leasing.
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