What was a pretty calm week overall has quickly transitioned into a pretty crazy time for the world of U.S. politics. Wednesday’s markets saw a number of stocks surge in anticipation of a possible Democrat senate victory, opening the door to a number of initiatives going into 2021. Solar energy companies have shot up big time on Wednesday and could rise even more going into the rest of the week.
After a close race, the election results for Georgia’s senate election ended up being a clean sweep for the Democrat party, giving the group a slight majority in the Senate. While news outlets are now focused on the subsequent political unrest, with Thursday’s markets likely to react to these developments, investors could make a lot of money from trading some of the big winners from the previous day.
Besides cannabis stocks, which have reacted quite positively to these developments, solar energy stocks have also shot up significantly on Wednesday. Anticipating a number of renewable energy initiatives that a Democrat-ran Senate and Congress could put into law, shares of some of the largest solar energy stocks have surged on Wednesday.
The biggest winner includes SunPower (NASDAQ: SPWR), whose stock was up over 20.2% over the course of the day. Among other reasons, one prominent Wall Street analyst ended up upgrading the most solar energy stocks following the Georgia Senate election results, although SunPower itself wasn’t among his list of recommendations, interestingly enough.
Bank of America analyst Julien Dumoulin-Smith raised his target price for most solar stocks, such as Sunrun (NASDAQ: RUN) as well as Sunnova Energy International (NASDAQ: NOVA). Sunrun is up around 16.5% right now, while Sunnova Energy is up just 8.8% following Wednesday’s trading activity.
Other energy stocks that shot up included Sunworks (NASDAQ: SUNW), whose shares are up around 16.2% following the news.
Even before this development, Wall Street analysts have been saying that the solar energy sector could be a major turnaround in the upcoming years. JP Morgan analyst Paul Coster said back in December that “the falling cost per watt of renewable energy…positions wind and solar as the lowest-cost source of energy in approximately 70% of the world.” Coster went on to say back then that solar could easily end up being competitive with fossil fuels in the upcoming years.
While it wouldn’t be surprising if energy stocks continued to rise on Thursday, investors and traders alike should remain cautious going into what will unlikely be a very volatile day for everyone.
Sunpower Company Profile
SunPower Corp is a vertically integrated solar module manufacturer and systems installer. The company’s modules derive from crystalline silicon technology and possess the industry’s highest conversion efficiencies (the percentage of sunlight that is converted into electricity). French oil giant Total is now SunPower’s majority shareholder. The operating business segments of the company are SunPower Energy Services and SunPower Technologies.. The maximum revenue of the company comes from SunPower Energy Services Segment, which includes sales of solar energy solutions in the North America region, and direct sales of turn-key engineering, procurement and construction services. – Warrior Trading News
