Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Top solar stocks jumped higher today after SunPower reported strong earnings and Suntech Power
So what: SunPower reported results last night that topped analysts' expectations and exploded higher in trading today. The company said shipments would be about 10% stronger than previously expected and its inventory and accounts receivables would be down. In the U.S. market, First Solar
Put all of this news together and you have investors excited that solar companies will continue to report strong fourth-quarter results and stocks will continue to rise.
Now what: The question now is: Should you buy today's pop? I'm heavily invested in solar and look at today as more of a holding opportunity than a buying opportunity. Solar stocks sank earlier this week when word came out that Germany may be preparing a massive cut to feed-in tariff rates, and when details surface, investors may shelter their bullishness.
Pullbacks, like the one we experienced earlier this week, are much better opportunities to jump in. I'm also waiting to hear more detail from Chinese companies about how strong demand in Germany and China will be in 2012. SunPower focused heavily on the U.S. market, where it dominates, but other manufacturers rely heavily on Europe and China and could provide more insight into solar power's future demand there.
Interested in more info on these solar stocks? Add them to your watchlist by clicking on the links below.
Fool contributor Travis Hoium owns shares of First Solar as well as SunPower in his personal account and an account he manages. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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