Insights

Why Enphase and Other Solar Stocks Jumped This Week

What happened
Solar stocks have been under pressure in recent months for several reasons. After first-quarter earnings reports, however, the stocks of Enphase Energy (NASDAQ: ENPH), SolarEdge Technologies (NASDAQ: SEDG), and SunPower (NASDAQ: SPWR) reversed that downtrend this week. As of Friday morning, shares of Enphase, SolarEdge, and SunPower were up about 9.5%, 7%, and 6%, respectively, for the week, according to data provided by S&P Global Market Intelligence.
So what
Enphase began the parade of earnings reports last week with record quarterly revenue and strong cash flow from operations. SolarEdge and SunPower reports followed this week. SolarEdge also announced record revenue, which soared 62% over the prior-year period. SunPower also had strong sales, and it said it entered the second quarter with a record backlog after its customer base grew by 40% year over year.
Image source: Getty Images.

Now what
The good news from the first-quarter updates was welcomed by investors after a miserable performance from these stocks over the past six months. That’s come in an environment of rising interest rates, supply chain disruptions, and inflation. Each of these metrics alone could have negative affects on the residential solar industry. Together, that backdrop has made investors nervous. 
In Enphase Energy’s first-quarter conference call for investors, its CEO, Badri Kothandaraman, addressed some of those headwinds. The company is trying to be proactive on the customer-facing installation portion of the business. Enphase has added field service technicians in both the U.S. and Europe to give installers on-site help.
The company said demand remains strong and it has been able to keep up on the manufacturing side. Regarding the supply chain challenges that impact its production, Kothandaraman stated that “the global supply chain situation is still under stress, but our situation is stable due to supplier management and qualification of alternate suppliers.” SolarEdge CEO Zvi Lando had similar comments in that the company is working hard to navigate supply chain challenges to be able to satisfy strong global demand.
Even in the face of a stock market in the midst of a sell-off this week, investors took those earnings report as positive developments. After these solar stocks had declined between 25% and 50% over the past six months, investors seemed to feel the businesses themselves warranted another look as investments.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool recommends SolarEdge Technologies. The Motley Fool has a disclosure policy. –

What happened

Solar stocks have been under pressure in recent months for several reasons. After first-quarter earnings reports, however, the stocks of Enphase Energy (NASDAQ: ENPH), SolarEdge Technologies (NASDAQ: SEDG), and SunPower (NASDAQ: SPWR) reversed that downtrend this week. As of Friday morning, shares of Enphase, SolarEdge, and SunPower were up about 9.5%, 7%, and 6%, respectively, for the week, according to data provided by S&P Global Market Intelligence.

So what

Enphase began the parade of earnings reports last week with record quarterly revenue and strong cash flow from operations. SolarEdge and SunPower reports followed this week. SolarEdge also announced record revenue, which soared 62% over the prior-year period. SunPower also had strong sales, and it said it entered the second quarter with a record backlog after its customer base grew by 40% year over year.

Image source: Getty Images.

Now what

The good news from the first-quarter updates was welcomed by investors after a miserable performance from these stocks over the past six months. That’s come in an environment of rising interest rates, supply chain disruptions, and inflation. Each of these metrics alone could have negative affects on the residential solar industry. Together, that backdrop has made investors nervous. 

In Enphase Energy’s first-quarter conference call for investors, its CEO, Badri Kothandaraman, addressed some of those headwinds. The company is trying to be proactive on the customer-facing installation portion of the business. Enphase has added field service technicians in both the U.S. and Europe to give installers on-site help.

The company said demand remains strong and it has been able to keep up on the manufacturing side. Regarding the supply chain challenges that impact its production, Kothandaraman stated that “the global supply chain situation is still under stress, but our situation is stable due to supplier management and qualification of alternate suppliers.” SolarEdge CEO Zvi Lando had similar comments in that the company is working hard to navigate supply chain challenges to be able to satisfy strong global demand.

Even in the face of a stock market in the midst of a sell-off this week, investors took those earnings report as positive developments. After these solar stocks had declined between 25% and 50% over the past six months, investors seemed to feel the businesses themselves warranted another look as investments.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool recommends SolarEdge Technologies. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!