Solar Edges Upward

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

The first half of the year has been a dismal one for the solar sector. Shares of the Claymore/MAC Global Solar ETF (NYSE: TAN  ) have plunged by almost 30%, while individual companies like Canadian Solar (Nasdaq: CSIQ  ) have fared much worse. Subsidy cuts, euro pressures, and the threat of massive oversupply all combined to shake the shares of multiple companies in the sector.

However, on Thursday, a Credit Suisse analyst upgraded major U.S. player First Solar (Nasdaq: FSLR  ) , citing a new outlook for increased demand. Fellow American solar player SunPower (Nasdaq: SPWRA  ) is along for the ride, up 6%. However, if you're a solar investor, don't get too excited. This could just be speculative play at hand. According to Reuters: "Investors began pricing in the impact of Germany's incentive cuts earlier this year, so speculative traders are bidding up solar shares on hopes for a delay or reduction in the cuts."

Let's wait and see how much German subsidy cuts affect the industry, and how much further the EU continues to free-fall. When I've got some clarity around those issues, then I'll decide to celebrate.

Jordan DiPietro owns shares of First Solar. First Solar is a Motley Fool Rule Breakers selection. Try any of our Foolish newsletters today, free for 30 days. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (3)

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.

Compare Brokers

Fool Disclosure

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: 1211821, ~/Articles/ArticleHandler.aspx, 10/27/2016 8:58:21 AM

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 11 hours ago Sponsored by:
DOW 18,199.33 30.06 0.00%
S&P 500 2,139.43 -3.73 0.00%
NASD 5,250.27 -33.13 0.00%

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

10/26/2016 4:00 PM
CSIQ $15.30 Up +0.08 +0.00%
Canadian Solar CAPS Rating: **
FSLR $41.11 Up +0.43 +0.00%
First Solar CAPS Rating: ***
SPWRA.DL $0.00 Down +0.00 +0.00%
SunPower Corporati… CAPS Rating: **
TAN $19.77 Down -0.12 +0.00%
Guggenheim Solar CAPS Rating: **