5 Solar Stocks to Consider Now

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Mar 29, 2012
In this article I will be analyzing the five solar stocks which are promising high returns and capital gains. Their stock prices have been rising over the last two quarters and their financial situation has improved drastically as well. The five major solar stocks worth considering for investment are:


JA Solar (JASO, Financial): This stock is currently trading in the market at an approximate price of $2 per share. There is a mixed opinion among experts regarding this price. Some believe that the price will fall while others predict it will rise. The 52-week trading range for this stock is between $1 and $8 per share approximately. Market capitalization at current price is close to $369 million and the average trading volume is nearly 7 million. Earnings per share (EPS) are less than $1 and the price-to-earnings (P/E) ratio is just above 4. Beta for this stock is more than 3 which signifies that it can be a risky investment. Debt-to-equity ratio is close to 1 and the income and sales growth is showing positive trends. Recent trends in the market suggest that the stock is moving higher in the past 2 months. It has been trading above the 50-day moving average. Traders are now focusing on calls as the prices have been seen to rise by almost 7%. In my opinion, this stock would be a good investment option. This is because it offers growth and income. Prices have been increasing and there are predictions of better capital gains in near future.


LDK Solar (LDK, Financial): This stock is currently trading at a price close to $6 per share. Some experts and analysts predict that the price for this stock will fall. However, most experts are of the opinion that the price will rise. The 52-week trading range for the stock is between $2 and $15 per share approximately. Market capitalization at current price is nearly $894 million and the average trading volume is more than 2 million. Earnings per share (EPS) are close to $1 and the price-to-earnings (P/E) ratio is almost 10. Beta for this stock is calculated at 3 which means that the risk associated with investing in this stock is typically higher. Sales and income growth is showing positive trends and the debt-to-equity ratio is also 3. The overall market situation has improved drastically. Solar stocks have been growing in relation to the market trends. This is a positive sign for investors looking to make sufficient profits. LDK has also been growing over the last two quarters. I believe that it would be a good option to consider this stock for investment. There is a lot of potential in this stock to offer attractive returns. But it is advisable that the risk factor should be considered too.


Yingli Green Energy (YGE, Financial): This stock is currently trading in the market at a price close to $5 per share. Most of the experts and analysts in the market believe that the price of this stock will rise. The 52-week trading range is between $3 and $13 per share approximately. Market capitalization at the current price is almost $692 million and the average trading volume is close to $5 million. Earnings per share (EPS) are above $1 and the price-to-earnings (P/E) ratio is above 4. The beta for this stock is calculated to be 3.11, which signifies that there might be risk associated with this investment. However, the income and sales growth has been showing positive trends lately. This is in light of the improving conditions. Debt-to-equity ratio is nearly 2 and the profit margin is just above 7%. The company’s performance for the last quarter was better than expected. All estimates about the earnings, revenues and stock prices were surpassed. In my opinion, this is a good investment for building a portfolio. It offers returns and there are chances of capital gains as prices are predicted to rise. It would be well-aligned with an aggressive investment strategy.


Suntech Power (STP, Financial): This stock is currently trading at a price close to $4 per share. Experts and analysts believe that the price for this particular stock will rise further during this quarter. The 52-week trading range for the stock is between $2 and $11 per share approximately. Market capitalization at the current price is more than $621 million with an average trading volume of nearly 4 million. Earnings per share (EPS) are less than $1 and the price-to-earnings (P/E) ratio is 14. Beta for this stock has been calculated to be 3.10. This indicates that the investment might be risky in case the market falls. For now the market seems to be doing well which is why the stock depicts a brighter picture. Debt-to-equity ratio is 1.50 and there are positive trends being seen in terms of income and sales growth. The company’s financial highlights for the last quarter of 2011 have been reported to be better than expected. Revenue and income was much better than what had been hoped for. This is largely due to the overall market conditions improving over the past two quarters. This has had a positive impact on the stock prices. In my opinion, this stock is worth considering for a diversified portfolio and for high returns. Investors who can manage their risk will find this an attractive option to buy.


Trina Solar (TSL, Financial): This stock is currently trading in the market at a price close to $10 per share. Some experts in the market predict that the price will remain unchanged for a while. However, many of these experts believe that there are chances that they may even raise further. The 52-week trading range is between $5 and $31 per share approximately. Market capitalization at current price is close to $743 million and the average trading volume is just above 4 million. Earnings per share (EPS) are more than $2 while the price-to-earnings (P/E) ratio is nearly 4. Beta for this stock is calculated at 3.27 which indicates that it might be risky to invest in. The debt-to-equity ratio is less than 1 which signifies stability. Sales and income are growing at a consistent and steady pace. This is one of the five Chinese solar stocks which are moving steadily upwards. These stocks are offering capital gains and better returns to investors. I believe that this might be an attractive option for investors looking for high returns.