3 Best Solar Stocks To Buy

Solar energy is on the rise as one of the leading green energy alternatives to fossil fuels. Climate change is frequently front-page news and is at the forefront of the current presidential administration's agenda. With the awareness of climate change rising, people are turning to better, cleaner energy sources to power their homes and businesses. Demand continues to increase, and according to Statista, with the advancements in technology, powering through solar energy is becoming increasingly more affordable. Because of this high demand, according to Nasdaq, renewable energy stocks are on the rise and some of the most in-demand stocks of 2021. Here are the top three stocks to keep an eye on in the coming weeks and months.

First Solar (FSLR)

First Solar is one of the leading providers of solar energy products. They are projected to increase their gross margins in 2021. They are in the process of opening a new facility in Malaysia and intend to increase their production capacity significantly by 2022. Maintaining production in Asia allows them to keep their costs down and in turn, keep costs low for their customers and increase their revenue. They intend to shift focus to panel manufacturing and sales in an effort to continue increasing their margins. They also maintain a low debt to income ratio meaning that they continue to be able to keep costs low and sales high.

SolarEdge Technologies (SEDG)

SolarEdge Technologies products are used in both commercial and residential areas. They are an Israel-based company that started out on the European stock market. It wasn't long before the stock made it to the United States. While the stock is currently somewhat expensive, it has strong long-term growth potential. Since their inception, they have expanded their manufacturing outside of Israel and China to Vietnam, Hungary, and South Korea. The company has shown consistency and is well managed in manufacturing and distribution. They are a strong competitor in the green energy market, and that is why they made our list of best solar stocks.

Sunrun Inc. (RUN)

Sunrun Inc. saw a recent jump in stock prices likely due to the high demand for green energy solutions among both commercial and residential properties. Customers are ready for lower utility bills and a softening impact on the environment, and Sunrun is one of the top competitors in the market. The stock has long-term potential as businesses and homes continue to search for new ways to utilize clean energy and avoid fossil fuels as much as possible.