3 Well-Positioned Solar Power Companies
Mary is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Energy is an ever-changing industry. Alternative energy is the new buzzword these days as more and more companies vie for a foothold in this field. Solar panels are more recognizable throughout the nation as they can be spotted on the roofs of parking structures, office buildings, government buildings, and even some residences. They are no longer just for hippies. As these products become more mainstream the companies that manufacture them are seeing positive results.
First Solar (NASDAQ: FSLR) showed a strong surge toward the end of the week as analysts’ views softened toward the solar panel company. The company rallied 7.6%. However, this was just a small upward movement compared to the 47.96% surge from SunPower Corporation (NASDAQ: SPWR) on Thursday alone. SunPower’s momentum was by all appearances tied to a deal to sell a solar project to MidAmerican, a Berkshire subsidiary. Just the mention of Berkshire-Hathaway involvement is enough to cause a buzz in the market these days as the investment powerhouse has a cult-like following among traders. And, of course, any large movement such as this can cause smaller companies in the industry such as First Solar to rally on their heels.
However, just because there is buzz does not detract from the fact that the movement was warranted. As the economy continues to recover and we delve into the coming year with fresh insight, the topic of alternative energy will only be brought up more and more. Many companies are making significant accomplishments in these areas and solar panels are becoming more commonplace. However, it is not just solar power that is being harnessed for energy. Windmill farms are popping up all over the country. As these new technologies become more commonplace pricing will adjust accordingly, eventually making wind and solar power affordable for the average American. Companies such as First Solar and SunPower stand to gain significantly from this normalization process.
Suntech Power Holdings (NYSE: STP) is another smaller company that specializes in the manufacturing and installation of solar panels. Based in China, Suntech Power distributes its products to utility companies throughout the world, providing a more affordable and more efficient source of energy. If the public continues to push for these more affordable and efficient solutions then companies such as First Solar, SunPower, and Suntech Power will have tremendous opportunity for growth. Currently, SunPower and Suntech Power provide the best bottom-line value for addition to one’s portfolio. Although, all three companies have a solid product and a solid mission.
MaryPosey has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend First Solar. 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. Is this post wrong? Click here. Think you can do better? Join us and write your own!