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Why Are Solar Stocks Crashing?

By Travis Hoium – Nov 29, 2013 at 10:00AM

Despite reporting strong earnings, solar leaders SunPower, First Solar, and Canadian Solar have seen their stocks crash recently. Here's why you should see that as a buy sign.

Solar stocks have been pummeled over the past few weeks but investors shouldn't be bailing on solar stocks just yet. SunPower (SPWR) and First Solar (FSLR 13.00%) recently reported outstanding earnings and Canadian Solar (CSIQ 11.22%), Trina Solar (NYSE: TSL), and JinkoSolar (JKS 7.41%) are all reporting a profit again.

The industry sell-off has been broad based, but with all of this improvement, it might be time to buy solar stocks. Erin Miller sat down with solar analyst Travis Hoium to see what he thinks of these stocks right now.

About the Author

Travis Hoium is a contributing Motley Fool Stock Market Analyst covering solar energy, technology, and growth stocks. Prior to The Motley Fool, Travis was a mechanical engineer at 3M and founded a virtual reality company. He holds a B.S. in Mechanical Engineering from The University of Minnesota and a M.B.A. from The Carlson School of Management at the University of Minnesota. When he’s not thinking about stocks, he spends time with his wife and three kids, and periodically competes in half-Ironman races.

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Erin Miller has no position in any stocks mentioned. Fool contributor Travis Hoium manages an account that owns shares of SunPower and personally owns shares and has the following options: long January 2015 $5 calls on SunPower, long January 2015 $7 calls on SunPower, long January 2015 $15 calls on SunPower, long January 2015 $25 calls on SunPower, and long January 2015 $40 calls on SunPower. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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