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Solar’s New Catalyst Fuels Decades of Growth

Solar’s New Catalyst Fuels Decades of Growth

The European Union has a clear endgame: to be free from fossil fuels entirely by 2050.

It aims to eliminate its dependence on Russian oil and natural gas.

But switching to renewable energy won’t be cheap.

The transition away from fossil fuels will require a $3.8 trillion investment into solar and wind projects.

That’s why the European Commission unveiled a major renewable energy plan this past week…

Solar Energy Has a New Catalyst

The $220 billion RePower EU plan is rich with proposals that will boost the EU’s solar network.

The European Commission outlined a dedicated solar strategy that would double the EU’s installed solar capacity by 2025.

We’re almost halfway through 2022, so that’s in just two and a half years or so.

Plus, it wants to potentially make a legal obligation to have solar panels on every single new building.

Not just residential — every single new building.

Considering the EU’s support for clean energy in the past, I wouldn’t be surprised if these initiatives go into effect.

Solar Stocks Are in for Decades of Growth

Keep in mind the EU’s transition to solar energy is just a piece of a much bigger global trend.

According to BloombergNEF, installed solar capacity is expected to climb 4X globally by 2030.

Global Installed Solar Capacity

(Source: BloombergNEF.)

The trend is clear as day: Solar stocks are in for decades of growth.

And there hasn’t been a better time to buy them.

With the carnage in tech stocks this year, the industry is now on sale.

The Invesco Solar ETF (NYSE: TAN) is down 16% on the year.

But when you dig into the actual companies held in the ETF, you can see growth is solid.

The average sales growth reported over the past year was 32%.

Rapid growth at cheaper prices? Sounds like a buying opportunity to me.

Ride the $16 Trillion Revolution

I think you’ll make money buying TAN at this level. But the gain potential on specific stocks is much higher.

That’s why you need to read Ian King’s special report, Infinergy: Ride the $16 Trillion Revolution.

Click here to find out more.

Regards,

a black and white drawing of a hand with a long pointy point

Steve Fernandez

Research Analyst, Strategic Fortunes

Morning Movers


 

From open till noon Eastern time.

VMware Inc. (NYSE: VMW) provides software solutions in the areas of modern applications, cloud management and infrastructure, networking, security and digital workspaces. The stock jumped 21% on the news that chipmaker Broadcom is in talks to acquire the company.

 

Forge Global Holdings Inc. (NYSE: FRGE) provides a marketplace that enables private company shareholders to trade private company shares with accredited investors. It is up 20% this morning despite having no significant news to report.

 

Entasis Therapeutics Holdings Inc. (Nasdaq: ETTX) discovers and develops antibacterial products to treat serious infections caused by multidrug-resistant pathogens. The stock climbed 19% on the news that it is being acquired by Innoviva in a deal worth $113 million.

 

TreeHouse Foods Inc. (NYSE: THS) manufactures and distributes private label and generic brand foods and beverages. It is up 15% after analysts at Truist Securities upgraded the stock to a buy rating, stating that inflation and the looming threat of recession should benefit private label food producers.

 

Clene Inc. (Nasdaq: CLNN) focuses on the discovery and development of novel clean-surfaced nanotechnology therapeutics. It is up 13%, continuing its climb from last week when it received a $3 million loan from state of Maryland to support the development of its commercial manufacturing facility.

 

Bowlero Corp. (NYSE: BOWL) operates bowling entertainment centers in the U.S. The stock is up 12% on the news that the company acquired three bowling centers in Wichita, Kansas.

 

Ocwen Financial Corp. (NYSE: OCN) is a financial services company that originates and services mortgage loans. The stock rose 12% after the company announced a $50 million share repurchase program.

 

Emergent BioSolutions Inc. (NYSE: EBS) focuses on the provision of preparedness and response solutions that address public health threats in the U.S. It is up 12%, continuing its uptrend from last week when concerns grew over monkeypox cases in the U.S.

 

American Axle & Manufacturing Holdings Inc. (NYSE: AXL) designs and manufactures driveline and metal forming technologies that support electric, hybrid and gas vehicles. The stock is up 11% despite the company dismissing rumors of a takeover, which boosted its shares last week.

 

Repare Therapeutics Inc. (Nasdaq: RPTX) is a clinical-stage precision oncology company that is up 10% today. The move came after BVF Partners revealed that it bought up 420,000 shares last week, upping its stake in the company.

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