It’s no secret that the solar industry is growing, with some analysts predicting it could become a $150 billion market by 2022.
And more individuals and companies are realizing the financial feasibility of going green, with over 50 gigawatts of solar capacity currently installed worldwide.
With the solar industry set to grow by double-digits in the near future, now may be the perfect time to invest in stocks that operate in this space.
We’ve selected a group of the solar industry’s hottest stocks that currently offer fantastic opportunities to invest.
Solyndra is one of the world’s most promising solar companies and a 2012 recipient of the Obama administration’s “green” energy initiative, the Energy Department’s prestigious “solar grant.”
Founded in 2009, the company began as simply a solar startup that applied for a federal loan guarantee under the American Recovery and Reinvestment Act of 2009. Solyndra was one of only three companies to receive the loan guarantee and thus was afforded an opportunity to raise capital to grow and improve its business.
The company quickly obtained $93.7 million in financing and, following an improvement in its financial performance, priced its initial public offering on September 4, 2012, with an offering price of $13.50 per share. Since then, the stock has gained 84%!
Ambry Genetics, a developer of human-optimized animal breeding models, technologies, and services for the pharmaceutical and agricultural industries, is probably the best-known of the new group of IPOs.
The pharmaceutical company Novartis acquired a controlling interest in Ambry Genetics in 2016. The two companies have partnered to develop a pipeline of cancer drugs and have expressed interest in applying the latest genomic research to genetic diseases.
Ambry Genetics’ prospects for growth seem endless, and given its strong stock price performance and robust revenue streams, it appears the company is well-positioned for the future.
The biotech giant Gilead Sciences Inc., which acquired a 41% stake in Ambry Genetics in February 2017, could also be a good investment. Gilead Sciences Inc. focuses on creating and developing therapeutics for the treatment of viral infections and chronic diseases.
The last but not least of the IPO candidates is Enphase Energy, Inc., a manufacturer of solar panels and solar equipment for the residential and commercial markets. The company was one of the first to receive federal tax breaks and investment dollars as a result of the Obama administration’s initiative to support renewable energy projects.
In 2016, Enphase Energy received $93.6 million in federal grants and low-cost loans through the SunShot Initiative, a joint effort between the U.S. Department of Energy and the U.S. Treasury. The company plans to use these funds to continue expanding its manufacturing capacity and creating new products to meet the global demand for sustainable energy solutions. The stock has gained 73% since its IPO on May 4, 2017.
This group of solar stocks represents the wave of the future, driven by the ever-increasing demand for sustainable energy options as the world continues to grapple with climate change. These innovative companies operate in a heavily regulated industry, but that isn’t stopping customers from purchasing their products, as evidenced by the growing number of residential and commercial installations around the world.
Now is the perfect time to invest in one of these companies, as shares of all of them are trading at a significant discount to their real value. For example, Solyndra’s shares are currently trading at just 12.6x EV / EBITDA, compared to its tangible book value of 44.2x EV / EBITDA, and Ambry Genetics’ shares are trading at 6.6x EV / EBITDA compared to its tangible book value of 26.3x EV / EBITDA.