Why SunPower's Shares Popped Again Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of SunPower (NASDAQ: SPWR  ) jumped 32% today after jumping 9% yesterday.

So what: Yesterday's move was fueled by the news that Warren Buffett was buying 579 MW of the company's projects for up to $2.5 billion. Today, an analyst from Lazard drove the move by upgrading the stock to a buy rating and slapping an $11 price target on it.  

Now what: At The Motley Fool we don't take analyst upgrades and downgrades too seriously because stocks will pop or drop in the short term only to forget the move a week later. But in this case, I completely agree with the analyst's sentiment; then again, I've been bullish on the stock for well over a year. I'd like to add to my position, but today I'm letting the market ride the upgrade wave -- I'll look for a better entry point down the road. For the long term this is still a great stock, but in the short term I don't see this analyst-driven pop as a reason to buy the stock today.

Interested in more info on SunPower? Add it to your watchlist by clicking here.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2177949, ~/Articles/ArticleHandler.aspx, 9/16/2014 7:28:25 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement