While the stock market remains near all-time highs, some sectors have fared much better than others. Tech stocks tend to be big winners in most years, but even within the tech space, a few sub-sectors have fared well compared to others.
Quantum computing stocks have soared in recent weeks, thanks to bullish news from that sector. But solar technology stocks have lagged, reflecting concerns over a pullback in subsidies.
That concern may be creating a buying opportunity today. Even if solar subsidies are scaled out, that will take years to play out. And solar technology continues to improve over time.
With potential peak fear in the market right now, many solar companies are right-sizing their operations to fit where the market is at. SolarEdge Technologies (SEDG) is seeing shares rally off of its latest cut announcement. That suggests investors see the company as capable of doing more with less in today’s market.
Action to take: SolarEdge has been facing steep losses amid a decline in interest in solar.
However, shares are down 80% over the past 12 months but are now starting to trend higher, making for a potential momentum and rebound play in the months ahead.
For traders, the June 2025 $25 calls, last trading for about $3.10, could see high double-digit returns from a continued trend higher in the first half of the year.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.