Most green energy stocks have been out of favor with the market over the past few years, thanks to low conventional energy prices. But with the prospect of a renewed interest in green energy and the upcoming election, these stocks may find support.
In the green energy space, only a handful of players have been able to thrive on their own. One of them is a major play on the continued rollout of solar energy.
That leader is First Solar (FSLR). It’s slightly outperformed the market year-to-date, even as other plays in the solar space have struggled.
Plus, earnings are up 105% over the past year, and revenues have surged 25%. That’s even amid a sluggish demand for green energy projects.
Best of all, First Solar has over $1.7 billion in cash on its balance sheet. That will give the company staying power even as other green energy firms face a financial cash crunch.
Action to take: Shares have been trending higher over the past year, but are well off their 52-week highs. Today’s investors can likely see a low-double-digit return, possibly more depending on how green energy policies fare in the upcoming election. That makes the stock a speculative buy now.
For traders, the December $280 calls, last trading for about $14.40, could see mid-double-digit returns on a continued uptrend through the end of the year, with the prospect of even better returns depending on the election.
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.