According to the Solar Energy Industries Association, the U.S. solar industry is expected to grow 25% less than was previously forecast for 2022, owing to logistic disruptions and rising input prices. However, the Biden administration’s Build Back Better plan, if passed, is expected to buttress investor sentiment about this industry. One of the bill’s aims is to make the installation of solar panels cost-effective for households.

Furthermore, the industry is expected to see solid growth with a rising focus on sustainable energy to address climate change concerns. A U.S. Energy Information Administration report claims solar generation will account for  14% of the total electricity generation in the United States by 2035 and 20% by 2050.

Therefore, we think solar stocks Array Technologies, Inc. (ARRY) and Beam Global (BEEM) could be good additions to one’s watchlist now. Wall Street analysts expect them to rally by 45% or more in price over the next 12 months.

Array Technologies, Inc. (ARRY)

Based in Albuquerque, New Mexico, ARRY manufactures and supplies solar tracking systems and related products for customers in the United States and internationally. It is a leading global provider of utility-scale solar tracker technology.

On November 11, 2021, ARRY announced that it has entered into a definitive agreement to acquire Soluciones Técnicas Integrales Norland, S.L. Jim Fusaro, CEO of ARRY, said, “Both STI Norland and Array are rooted in entrepreneurial, founder-operated businesses that are focused on innovation. Together, I believe we have the technology, culture, and capabilities to build a truly global business that can create tremendous value for our customers, employees, and shareholders.”

ARRY’s revenue came in at $192.07 million for its fiscal third quarter, ended September 30, 2021, up 37.7% year-over-year. The company’s total assets were  $776.59 million for the period ended September 30, 2021, compared to $656.02 million for the period ended December 31, 2020. Also, its cash and cash equivalents came in at $116.39 million compared to $108.44 million for the same period.

For its fiscal year 2022, analysts expect ARRY’s revenue to be $1.41 billion, representing a 63.8% year-over-year rise. Also, the company’s EPS is expected to increase 392.9% year-over-year to $0.69 in the next year. Over the past six months, the stock has gained 8.8% in price to close yesterday’s trading session at $17.50. Wall Street analysts expect the stock to hit $25.75 in the next 12 months, which indicates a potential 47.1% upside.

Beam Global (BEEM)

San Diego. Calif.-based BEEM is a cleantech company that designs, develops, engineers, manufactures, and sells renewably energized products for electric vehicle (EV)  charging infrastructure, outdoor media and branding, and energy security products. Its product portfolio includes EV ARC and Solar Tree DCFC.

On December 8, 2021, BEEM announced that a Federally funded research and development Center had made a third to expand its fleet of EV ARC solar-powered EV charging systems. BEEM CEO Desmond Wheatley said, “Solar-powered off-grid EV ARC systems are the fastest deployed permanent yet transportable EV charging solution on the market and they deliver a layer of resiliency that you can’t get from the centralized grid.”

BEEM’s revenues increased 63.3% year-over-year to $2.02 million in the third quarter, ended September 30, 2021. Its total liabilities came in at $3.63 million for the period ended September 30, 2021, compared to $3.75 for the period ended December 31, 2020. And  its net inventory came in at $2.13 million, compared to $1.09 million, for the same period.

Analysts expect BEEM’s revenue to grow 129.7% year-over-year to $20.19 million in its fiscal 2022. And  its EPS is expected to grow 11.9% in the current year.

BEEM closed the last trading session at $22.02. Wall Street analysts expect the stock to hit $40 in the next 12 months, which indicates a potential 81.7% upside.

ARRY shares were unchanged in premarket trading Wednesday. Year-to-date, ARRY has declined -59.43%, versus a 25.15% rise in the benchmark S&P 500 index during the same period.

About the Author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...

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