Please ensure Javascript is enabled for purposes of website accessibility

Solar Investors Will Be Closely Watching This Presidential Decision

By Motley Fool Staff - Oct 1, 2017 at 3:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The ITC's vote to recommend import restrictions on solar panels to protect the domestic market would cause waves in the industry. Investors should be closely watching the outcome of this proposal.

The recommendation from the International Trade Commission (ITC) to impose import restrictions on solar panel imports to the U.S. will have far-reaching consequences for the solar industry.

In this segment of Industry Focus: Energy, show host Sarah Priestley and Motley Fool premium analyst Taylor Muckerman discuss what the effect might be on solar stocks and how investors might avoid some volatility in this nascent industry.

A full transcript follows the video.

This video was recorded on Sept. 28, 2017.

Sarah Priestley: This still has a long way to go, as you said. The ITC commissioners submit specific policy recommendations to the White House. They'll do that by mid-November. The president then has two months to decide whether to impose trade barriers, and that's if the restrictions aren't opposed. As we're alluding to, in this situation, it doesn't seem to make sense. As I said, it'll be interesting to see what they do. But what do you think this would do for solar stocks if this does go through?

Taylor Muckerman: You look at some companies, Tesla, I guess, if you want access to Solar City, and SunPower might be a little bit more exposed. When the news broke that the ITC had passed this, as you said, four-to-nil, First Solar (FSLR 1.93%) actually jumped up to 6% on Friday because they're largely believed to be less impacted than others just based on the technology and the solar panel style that they're making. There are some companies that could be a little less impacted, First Solar being one of them, if you believe the market. But then, earlier this week, it dropped about 8% in a single day. So, certainly, some uncertainty there. Certainly some uncertainty -- funny to say that.

But it's something that anyone investing in this industry is going to want to keep an eye on. And it just goes to show that investing in a pool of these solar companies might be one of the best ways to go about it, because as much growth as we've talked about in this industry, it's still very basic, it's a small percentage of overall global energy production and U.S. energy production. So, personally, I believe a basket of solar companies would be the best way to go. And I do believe this is an industry worth investing in.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

First Solar, Inc. Stock Quote
First Solar, Inc.
FSLR
$68.13 (1.93%) $1.29

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
317%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.