The solar energy industry has grown rapidly even as fossil fuels remain the dominant source of global energy use. Solar industry companies come from multiple sectors, including utilities, industrial, and energy, and include popular stocks such as SolarEdge Technologies (SEDG) and SunRun Inc. (RUN). While some large utilities and energy companies have solar and renewable energy divisions, these businesses typically are not included in the industry’s listings because the parent’s primary focus is not solar.
Solar stocks, represented by the Invesco Solar ETF (TAN), have significantly underperformed the broader market over the past year. TAN has provided a total return of -6.3% over the last 12 months, well behind the Russell 1000’s total return of 26.6%. These market performance numbers and all statistics in the tables below are as of Dec. 14, 2021.
Here are the top three solar stocks with the best value, the fastest growth, and the most momentum.
These are the solar stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
Best Value Solar Stocks
Market Cap ($B)
12-Month Trailing P/E Ratio
Daqo New Energy Corp. (DQ)
ReneSola Ltd. (SOL)
SunPower Corp. (SPWR)
Daqo New Energy Corp.: Daqo New Energy is a China-based solar energy company that manufactures polysilicon for sale to manufacturers of solar cells and modules.ReneSola Ltd.: ReneSola is an international renewable energy company that builds and manages energy projects. The company primarily focuses on the development, construction management, and financing of solar power projects. The company reported results on Dec. 7 for Q3 2021, ended Sept. 30. Net income attributable to ReneSola fell by plummeted year-over-year (YOY) as net revenues rose sharply. The company attributed the revenue increase largely to the sale of…..