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4 Downgraded Solar Stocks to Avoid

Stock MarketsOct 26, 2021 03:00PM ET
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© Reuters. 4 Downgraded Solar Stocks to Avoid

With concerns over rising input costs, Guggenheim analysts have downgraded solar stocks SolarEdge Technologies (NASDAQ:SEDG), First Solar (NASDAQ:FSLR), Shoals Technologies (SHLS), and Array Technologies (ARRY. These stocks look overvalued at their current price levels, so we think they are best avoided now. Read on.Even though governments worldwide have been taking steps to transition their countries to a renewable energy-driven future, rising input costs and supply chain constraints are affecting the renewable energy sector’s growth. Federal Reserve chair Jerome Powell said that the global supply chain issues could remain through 2022.

Analysts at Guggenheim Partners recently downgraded four solar stocks from “Buy” to “Neutral,” primarily on concerns over rising input costs, namely steel, aluminum, labor, and panels. Furthermore, Kelsey Goss, research analyst at Wood Mackenzie, said, “There’s lots of uncertainty in the industry because they do not know how strict the WRO enforcement will be, or currently is.”

The solar stocks downgraded by Guggenheim analysts—SolarEdge Technologies, Inc. (SEDG), First Solar, Inc. (FSLR), Shoals Technologies Group, Inc. (SHLS), and Array Technologies, Inc. (ARRY)—do look significantly overvalued at their current price levels. So, we think these stocks are best avoided now.

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4 Downgraded Solar Stocks to Avoid
 

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Comments (1)
itai palachi
itai palachi Oct 31, 2021 1:37PM ET
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Since this article SEDG jump over 10% in a week. Great job Mr.writer
 
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