SolarCity Leads Renewable-Energy Stocks Today

Stocks are moving slightly higher today based mostly on relief that the U.S. isn't defaulting on its debts today. The Dow Jones Industrial Average (DJINDICES: ^DJI  ) is flat in late trading, but it would be up if not for IBM's 7% drop after earnings, pulling down the price-weighted index.

Energy stocks are mixed today after oil dropped $1.60 to near $100 per barrel in trading today. Oil has declined steadily since peaking at more than $110 per barrel in late August, and traders are worried that damage done from the government shutdown could negatively impact demand. But the drop in oil hasn't hurt renewable-energy stocks today.

SolarCity (NASDAQ: SCTY  ) jumped as much as 9.8% in early trading today, and as of 3:50 p.m. EDT the stock is still up 4.3%. Shares ran up following a stock and debt offering yesterday -- an unusual reaction, because the move was dilutive to current shareholders.

The reason investors are still excited about the stock, even after dilution, is really last week's earnings guidance. Management expects to install 278 megawatts this year and between 475 MW and 525 MW next year, up to 89% growth year over year. The stock has rallied this week and is up an incredible 360% so far this year.

SCTY Total Return Price Chart

SCTY Total Return Price data by YCharts.

We'll find out more about SolarCity's financial position when the company announces earnings on Nov. 6.

Real Goods Solar (NASDAQ: RGSE  ) bounced an incredible 39%, outshining its much larger rival. Generally speaking, what's good for SolarCity should be good for Real Goods Solar, although it isn't growing as aggressively in solar leases. The company installed just 5.6 MW of solar last quarter, up 17.8% from a year ago but well behind the 53 MW SolarCity installed.

A stock pop doesn't make it a good buy, but with the retail and commercial solar markets growing rapidly, this is a stock to watch in the solar industry.

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  • Report this Comment On October 18, 2013, at 12:09 AM, bcellars wrote:

    Hey Travis, pretty much a 'candy floss' article without much insight or information. And you might want to mention to readers that RSOL did a much bigger pop back in May, then gave most of it back within 2 weeks and then continued to fall to even lower lows over the next few months before finally hitting bottom. You'd have to be a Real fool to buy it now.

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Related Tickers

8/22/2014 4:00 PM
SCTY $70.73 Up +0.83 +1.19%
SolarCity CAPS Rating: ***
^DJI $17001.22 Down -38.27 -0.22%
DOW JONES INDUSTRI… CAPS Rating: No stars
RGSE $1.66 Down -0.18 -9.78%
Real Goods Solar CAPS Rating: *

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