The solar industry is expanding rapidly on favorable federal policies and rising demand across various sectors. However, not all solar stocks are well positioned to capitalize on the industry tailwinds. Wall Street analysts are currently bearish on solar stocks SunPower (NASDAQ:SPWR) and Sunworks (NASDAQ:SUNW). Read on to learn why.The growing demand for sustainable energy sources and zero-emission alternatives has driven significant growth in the solar industry because it is currently the most efficient and cost-effective renewable energy source.
President Biden’s $2 trillion infrastructure spending proposal stands as one of the largest federal efforts to curb the country’s greenhouse gas emissions. As a result, solar installations are expected to quadruple from current levels by 2030.
However, not all solar stocks are expected to benefit from the industry tailwinds. Wall Street analysts expect solar stocks SunPower Corporation (SPWR) and Sunworks, Inc. (SUNW) to underperform in the near term due to their weak fundamentals.