My Favorite Solar Stocks Right Now

While it's too early to determine the true impacts of the impending COVID-19 recession, it's clear it will adversely affect every major industry—and solar is no exception. Nevertheless, the long-term potential of the solar industry is still immense.

I'm bullish on solar because it presents a sustainable alternative to fossil fuels, it has a low environmental impact since it does not need fuel combustion to produce energy, and it enables complete energy independence on foreign countries.

Many opponents of solar energy state that it is very expensive, and therefore not suitable for wide use. Undeniably, solar energy presents the most expensive energy source, however, it's cost competitiveness is increasing. Consequently, solar energy has already become more affordable for many end consumers, as evidenced by the fact that 2019 was a record year for the entire solar segment. 

Solar Stocks I like

Even though solar accounted for approximately 40% of all new electricity capacity in 2019, fossil fuels remain the main source of energy. And it will remain so in years to come. The current situation with oil prices of around $20-25 per barrel makes fossil fuels very attractive, no doubt. Still, the solar industry is just as much of a star waiting shine.

One of my favorite financial ratios to look at is the price-to-sales ratio. Though this isn't the only financial ratio, I like it because it compares a stock's price to how much money the company makes. The lower a company's P/S ratio, the more undervalued the stock is thought to be. Currently, my top choices in terms of P/S ratio are JinkoSolar Holding Co. JKS, with P/S ratio of 0.1, Canadian Solar Inc. CSIQ, with P/S ratio 0.3, and SunPower Corp. SPWR, with P/S ratio of 0.4.

These are my top three right now. As always, do your own research before determining if these stocks are right for you. 

This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com Questions about this release can be send to ivana@iamnewswire.com

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Photo by American Public Power Association on Unsplash