3 Solar Stocks to Buy Now: Q2 Edition

Stocks to buy

Solar energy has been one of the fastest growing sectors over the past decades. For the past two years, the solar industry has been the top recipient of federal energy subsidies and incentives among other renewable energy industries. Furthermore, the solar power segment accounted for the largest market share of 30.95% in the renewable energy market. The below are the three stocks investors should look into as they keep their eyes on solar energy stocks

First Solar (FSLR)

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First Solar (NASDAQ:FSLR) manufactures solar panels alongside utility-scale PV power plants and supporting services.

Since 2017, First Solar has delivered consistent TTM sales with figures ranging from $2.4 and $3.6 billion. The company showcased fast-paced growth, with a net income of $349 million in Q4 2023. First Solar also hit an impressive revenue growth from $801 million to $1.16 billion during this time period. 

While scoring solid sales and meeting revenue goals, the company has aggressively invested in research and development. First Solar has invested more than $1.5 billion in R&D cumulatively, including a $1.1 billion investment in a manufacturing facility in Iberia Parish, Louisiana in Q3. This new facility is expected to increase the company’s manufacturing capacity by 3.5 gigawatts (GW), allowing First Solar to reach 14 GW capacity in the U.S. and 25 GW globally in the next two years.

With forward-looking, rapid expansion strategy and aggressive investments into R&D, First Solar will continue to attract numerous investors. 

Array Technologies (ARRY)

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Array Technologies (NASDAQ:ARRY) is a leading American company that provides utility-scale solar tracking solutions. It is is the largest solar tracker company globally, with active operations in regions such as Arizona, Australia, Brazil, England, South Africa and Spain. 

The company is known for its integrated system of electric motors and controllers called DuraTrack. This uses single-axis tracker technology that maximizes energy production and allows for efficient use of the confined space.

In November 2023, the firm announced a new $50 million investment into a solar tracker manufacturing facility in New Mexico, which will be the company’s second facility in New Mexico and 22-acre expansion.

In terms of financials, Array Technologies has successfully reduced its debt to less than $700 million. With its distinguished technology and improving financials, Array Technologies provides a good buy opportunity for investors. 

NextEra Energy (NEE)

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NextEra Energy (NYSE:NEE) is the world’s largest producer of renewable solar energy headquartered in Juno Beach, Florida. The company’s leadership in renewable energy transition makes its stock favorable for long-term growth potential. 

NextEra Energy has a subsidiary known as Florida Power & Light Company, America’s leading power utilities in sales, and NextEra Energy Resources (NEER), the leading energy provider for NEE with over 37,000 megawatts of generating capacity. 

NextEra Energy has consistently delivered a CAGR of 10% while all the other top ten power companies averaged 2%. The company has consistently increased dividends since 2014, making the stock a reliable dividend achiever. This trend is expected to continue for the next five years with a suggested dividend growth rate of 14.70%. As the solar industry is anticipated to grow rapidly around the world, NextEra Energy showcases a promising future.

On the date of publication, Andy Kim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Andy is a self-taught investor who is interested in ESG and socially responsible investing. He has managed the portfolio of a small investment fund and started his own research firm. Through his freelance writing on InvestorPlace, he hopes to find and share promising investments in companies with the goal of bettering the world.

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