Solar Stocks Shine Again As Declining Treasury Yields Boost Market Confidence
Portfolio Pulse from Piero Cingari
Solar stocks, including the Invesco Solar ETF (TAN) and First Solar Inc. (FSLR), have seen significant gains due to declining Treasury yields and positive earnings. TAN surged 10% over the last 10 sessions, and FSLR reported Q1 revenues of $794 million, surpassing estimates. Lower Treasury yields benefit solar companies by reducing borrowing costs. Goldman Sachs set a 12-month price target for FSLR at $268, indicating a potential 38% increase. Solar stocks are currently more affordable, trading at 22 times forward earnings compared to their peak valuations.
May 08, 2024 | 7:35 pm
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First Solar Inc. (FSLR) reported Q1 revenues of $794 million, surpassing estimates, with an adjusted EPS of $2.20. Goldman Sachs set a 12-month price target of $268 for FSLR, indicating a potential 38% increase.
FSLR's positive earnings report and the optimistic price target set by Goldman Sachs reflect strong company performance and favorable market conditions, likely leading to a short-term increase in its stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 95
POSITIVE IMPACT
The Invesco Solar ETF (TAN) has surged 10% over the last 10 sessions, reflecting broader investor optimism in the renewable energy sector due to favorable market conditions and declining Treasury yields.
TAN's recent surge is directly linked to the declining Treasury yields, which reduce borrowing costs for solar companies, thereby improving their profitability and making solar investments more attractive.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90