• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Energy

Solar Stocks Cool Off

But the sector's strong fundamentals make for a sunny outlook.
By ERIC JACKSON May 16, 2014 | 01:30 PM EDT
Stocks quotes in this article: CSIQ, SCTY, TSL, YGE

Canadian Solar (CSIQ) is getting hit hard today. The company disclosed in their earnings this morning that their second quarter revenue would be slightly lower than what analysts had as their consensus target.

This is the second quarter in a row now that Canadian Solar has disappointed. In the first quarter, management blamed a bitter winter in Ontario for creating major delays for a number of solar projects in the Canadian province.

Yet, after both these earnings disappointments, management has kept up their full-year guidance. They claim that all delayed revenue will get caught up as the year rolls on. The year is shaping up to be very back-end loaded for the company.

These two delays are wreaking havoc with Canadian Solar's stock price. After rising eightfold last year, the stock has basically now been cut in half -- from $44 to $22 after this morning's results.

Canadian Solar is not the only solar company that has seen its shares pull back recently. Solar City (SCTY) is down 46% from its all-time highs. Trina Solar (TSL) is 45% below its spring highs. Yingle (YGE) is 69% below the 52-week highs.

To be sure, a big reason for the strong retreat of all these solar names is that they are caught up in last year's momentum move up. The question is: Where do they go from here?

Solar demand is still exploding in China and in the U.S. While investors in solar stocks remember well the boom and bust of 2007 and into 2008, this is a different time. Unlike back then, there is truly global demand for solar today. Solar energy represents 1% of the energy created in the U.S. last year. However, this rate is doubling every two years. It won't take long for solar energy to be very large.

China installed 12 GW of solar power last year. That's more than its prior three years combined. What's more, no country has ever installed so much solar power in a given year.

This means that, although these stocks are all getting a haircut at the moment, strong fundamentals are underlying this sector. As soon as the correction runs its course, you should watch for Canadian Solar and many of the other solar names to go back to and then pass their 52-week highs.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Jackson had no positions in the stocks mentioned.

TAGS: Investing | U.S. Equity | Energy

More from Energy

Raising HAL

Bruce Kamich
May 26, 2022 3:43 PM EDT

Shares of Halliburton have the energy to make new highs, according to the charts.

Investing in Fantasyland Will Only Earn You Fantasies

Jim Collins
May 26, 2022 12:25 PM EDT

Here are the areas I'm buying, and here and the areas of which I'm turning away in disgust.

The Charts Map a Route to Phillips 66

Bruce Kamich
May 26, 2022 11:42 AM EDT

Shares of PSX have made an upside breakout, so investors can step on the gas.

Teekay Tankers Breaks Out of a Large Base Formation

Bruce Kamich
May 26, 2022 9:03 AM EDT

The technical signs for the marine energy transportation and storage company are flashing positive.

As Pioneer Natural Resources Blazes a Trail Higher, We Have New Price Targets

Bruce Kamich
May 25, 2022 2:50 PM EDT

Here's our updated bullish strategy on PXD.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:46 PM EDT STEPHEN GUILFOYLE

    We're Shedding Some of This Holding on Strength

    Check out the Stocks Under $10 portfolio here!
  • 11:33 AM EDT PETER TCHIR

    Thoughts Ahead of the Fed Minutes

    Recent economic and earnings issues are convincing...
  • 02:24 PM EDT PAUL PRICE

    An Interesting Chart

    I'm betting heavily that stocks will be way up aga...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login