Historically, tumultuous times offer some of the best opportunities to buy stocks, and the market's recent mess surely qualifies. Even with all the volatility in the renewable energy sector affecting solar module maker Evergreen Solar (Nasdaq: ESLR), many investors still see many compelling reasons to consider buying shares of the company today.
In our Motley Fool CAPS community, 2,080 investors have given a bullish or bearish opinion on Evergreen Solar. Poring through the detailed information packed in pitches and other comments, I've dug up three of the top reasons why many members consider the stock a buy today.
1. Low-cost manufacturing: While solar players like Yingli Green Energy (NYSE: YGE) look to increase their footprint in China, Evergreen has a manufacturing contract in place with Jiawei Solar and will receive financing from the Wuhan government for its new manufacturing facility in China. Some CAPS members are bullish on Evergeen's goals of boosting production to about 500 megawatts and lowering costs to $1 per watt within a couple of years at the plant.
2. Solar green shoots?: Although Evergreen's earnings took a hit, second-quarter revenue nearly tripled to $63.8 million as it shipped nearly six more megawatts of products than in the first quarter. Like MEMC Electronic Materials' (NYSE: WFR) better-than-expected revenue, the company was able to pull this off in an environment of weak prices, giving some investors reason to believe a fuller recovery is coming.
3. Demand upturn: Peer SunPower (Nasdaq: SPWRA) recently gave a third-quarter revenue outlook that topped analyst estimates, and Chinese companies LDK Solar (NYSE: LDK), Trina Solar (NYSE: TSL), and China Sunergy (Nasdaq: CSUN) raised their second-quarter shipment forecasts, giving investors hope for a demand recovery. A JPMorganChase analyst recently noted that smooth operations at Evergreen's Devens facility could help it meet the future demand that many investors expect to see in solar.
Of course, there's a lot more devil in the details of these buy-side opinions, which is why CAPS is such a great resource to check and balance your own analysis. You can read the bullish and bearish sides to every stock. To see what the very best CAPS members are saying now about Evergreen Solar, just click on over to Motley Fool CAPS and have a look -- it's all free, and your opinion's welcome, too. And be sure to check out the counterargument to this article with three reasons to sell Evergreen Solar.
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