Why SunPower Shares Were Heating Up

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  ) were shining brighter today, climbing as much as 14% following on upgrade from Robert W. Baird.

So what: The investment firm bumped its rating on SunPower from Neutral to Outperform, saying that the solar-panel maker's exposure to Japan gives it an excellent opportunity in a growing market. Analyst Ben Kallo explained that SunPower has a number of partnerships with Japanese companies, and that it has a stronger financial position than many of its competitors, due to support from French energy company Total.

Now what: SunPower hit a new 52-week high on the upgrade, and shares have more than tripled in the past month along with a broad rebound in solar stocks. SunPower is considered the efficiency leader in the industry, meaning its panels generate the most energy for the amount of space they take up. Solar is a risky industry, however, as its still in its infancy and largely dependent on government subsidies. Like car companies in the fledgling automobile industry, it's a safe bet that many solar manufacturers will fold. Still, SunPower looks stronger than most despite borderline profitability. The company will report earnings next Thursday. Analysts are expecting EPS of $0.06. For more on SunPower, check out this article from my colleague Travis Hoium, a SunPower bull.


Read/Post Comments (1) | Recommend This Article (1)

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.

Add your comment.

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: 2390458, ~/Articles/ArticleHandler.aspx, 11/26/2014 11:37:20 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...

Today's Market

updated 1 hour ago Sponsored by:
DOW 17,827.75 12.81 0.07%
S&P 500 2,072.83 5.80 0.28%
NASD 4,787.32 29.07 0.61%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

11/26/2014 3:59 PM
SPWR $29.43 Up +0.31 +1.06%
SunPower Corporati… CAPS Rating: ***

Advertisement