The reduction of CO2 emissions is essential to the fight against global warming, which scientists believe is responsible for catastrophic weather events that are becoming increasingly frequent. There is an increasing need to switch from fossil fuels such as oil, gas or coal to sources of renewable energy in order to slow down global warming.
The need for clean energy, coupled with the financial support that many governments are giving to projects for the development of renewables around the world, is fueling the sector’s expectations for higher profitability and growth in the near future.
SunPower Corp (SPWR, Financial), a leading provider of solar panels and systems mainly for residential and commercial customers in the U.S. and internationally, is well positioned to capitalize on the rising need for homeowners and business to have access to cleaner and cheaper energy.
Shares of SunPower have climbed by 234.24% over the past year to trade at $22.70 apiece for a market capitalization of $3.91 billion, outperforming the Nasdaq by more than 200%.
The company is planning to make good use of the cash resources provided by government incentives and its higher stock price to update its commercial and industrial solutions in a way that they will be in line with the customers’ demands.
The stock has a price-sales ratio of 3.25 versus the industry median of 3.04 and an enterprise-value-to-Ebitda ratio of 6.67 versus the industry median of 17.92. The 52-week range is $5.98 to $57.52, the 50-Day Moving Average yields $26.23 while the 200-Day Moving Average yields $31.14.
All things considered, I believe that the stock is fairly priced given its growth opportunities, and it even looks fairly cheap compared to the industry at large.
Disclosure: I have no positions in any security mentioned.
