Investors across the world have recognized it’s prudent to invest in renewable energy, as fossil fuels will be gradually phased out in the future.  As a result, solar stocks have been soaring.  

Year-to-date, the Invesco Solar ETF (TAN - Get Rating) is trading up a whopping 144%.

So which solar stocks are worthy of investing your hard-earned money in?  Today I’m taking a look at three solar stocks that are rated “Buys” in our POWR Ratings system: SunPower Corporation (SPWR), JinkoSolar Holding Company (JKS) and Canadian Solar (CSIQ).

SunPower Corporation (SPWR)

If you are looking to invest in a solar company that does a little bit of everything in the solar industry, look no further than SPWR. SPWR designs, develops, creates, advertises and sells solar electric systems, products and services. The company’s customers include commercial entities, homeowners and power plants.

SPWR’s solar panels and cells are centered on semiconductors that convert light from the sun into electricity. These panels and cells are made with the company’s unique proprietary processes. SPWR has solid POWR Rating components, with an “A” for Trade Grade, and “B’s” for Buy & Hold Grade, Peer Grade, and Industry Rank.

Out of 15 publicly traded companies in the Solar industry, SPWR is ranked 8th. SPWR recently soared from $10 all the way to $18.25.

One of the key differences between SPWR and the rest of the solar stocks is SPWR is profitable. Add the fact that SPWR has a flawless track record of beating analysts’ earnings estimates and you have all the more reason to add this solar stock to your portfolio.

JinkoSolar Holding Company (JKS - Get Rating)

This solar product maker is based in China. The company’s solar product chain is vertically integrated, sourced from solar modules and recovered silicon. The company’s main offerings are solar cells, solar modules and silicon wafers. JKS clients are located in Asia, North America and Europe.

The POWR Ratings show JKS receives “A’s” in Trade Grade, Buy & Hold Grade, and Peer Grade. JKS is ranked 5th out of 15 publicly traded companies in the Solar space.

Part of the reason why JKS skyrocketed recently is that its quarterly revenue spiked more than 22% compared to the same quarter in 2019. As a result, JKS has soared from $20 all the way to $62 in just the past 5 weeks. 

After this impressive run, you might want to wait for investors to take some profits off the table, so as to take advantage of better prices.

Canadian Solar (CSIQ - Get Rating)

There is a certain irony in a solar company from Canada capturing market share, as our neighbors to the North receive minimal sunshine. Do not let CSIQ’s location stop you from investing in this solar power specialist. CSIQ makes solar panels, customized solar power applications, silicon cells, silicon wafers and silicon ingots.

CSIQ products are used by those on the grid as well as those off the grid. The company has production facilities throughout Canada, China, Brazil, Vietnam and Indonesia.

CSIQ has an “A” Trade Grade in the POWR Ratings service and  “B” grades in the Buy & Hold and Industry Rank components. All in all, CSIQ is ranked fourth of 15 stocks in the solar space.

CSIQ is reasonably priced around $39 as its forward P/E ratio is 15 while many other solar stocks have double or triple that ratio. This well-diversified stock should continue to grow across posterity, that could make it a solid buy-and-hold investment to keep in your portfolio for years to come.

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JKS shares were trading at $66.68 per share on Thursday afternoon, down $1.35 (-1.98%). Year-to-date, JKS has gained 196.49%, versus a 8.83% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...

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