3 Millionaire-Maker Solar Stocks to Hold Through Thick and Thin

Gabriel Osorio-Mazzilli

Thu, Aug 24, 2023, 6:20 PM 4 min read

In a world struggling with sustainability, these companies are beacons of hope that harness the sun’s energy to power our present and our future. They are so visionary, and committed to their development, technology, and growth that they are undoubtedly an example of true solar stocks to buy and hold regardless of their adversities.

Renewable energy in general is incredibly important to our continuation as a species. Governments are falling far behind their climate targets, and it’s unknown how long we have left before we cause unrecoverable damage to the planet.

If I had to choose some long-term solar stocks to pick, these three would certainly be in my portfolio, let’s talk about them.

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Sunrun (RUN)

An image of a solar panel in the shape of a piggy bank on a rooftop; concept for solar stocks

Source: Andreas Prott / Shutterstock

Sunrun (NASDAQ:RUN) is a leading U.S. company whose mission is to make solar energy and battery storage available to every home. Their goal? To empower households to produce and store their own clean energy through solar panels and batteries.

What makes them shine so much brighter is their steady growth. During the last quarter, they added 103 megawatt hours of storage capacity, a 35% increase over the previous year. This brought their total grid storage capacity to an impressive 918-megawatt hours. In addition, more and more people are adopting solar power, with 18% of new installations already using it. The adoption rate of backup storage has also grown by around 30%, showing a promising increase in subscriber value and revenue.

Sunrun’s influence is also expanding beyond California. Out-of-state sales soared 25% in the latest quarter, a trend that continued through June and July. As for solar power generation, it exceeded expectations, installing 296.6 megawatts during the quarter, bringing its total capacity to a whopping 6.2 gigawatts. This helps make it one of those solar stocks to buy.

Notably, they are not only dedicated to business but also to improving communities. Through partnerships such as the one with Fresno Housing, it is installing solar systems in affordable housing, helping families save on their energy bills, and setting an example for similar projects.

SolarEdge (SEDG)

Concept art of solar panels charging a vehicle.

Source: Shutterstock

SolarEdge Technologies (NASDAQ:SEDG) is another leading company in the solar industry. Their expertise lies in creating advanced solutions for solar systems, which has earned them the reputation of “billion-dollar solar stocks”.

In terms of figures, they posted record total revenues of $991.3 million. The solar segment alone earned $947.4 million. With smart cost management, they achieved a solid gross margin of 32.0% on a GAAP basis and 32.7% on a non-GAAP basis.

In terms of net income, they earned US$119.5 million, with earnings per share of US$2.03. With $853.5 million in cash and investments, they are in a strong financial position. All in all, it’s one of those solar stocks to buy or at least keep on your watchlist.

They are also betting big on innovation. It has introduced inverters with power control technology, which enables larger solar systems without costly main panel upgrades.

They also promote energy storage solutions and initiatives such as Renewable Battery Connect, which encourages the use of stored energy during peak demand to stabilize the grid. Optimizing energy conversion benefits both homeowners and utilities.

Maxeon Solar (MAXN)

rows of solar panels, representing solar stocks

Source: Love Silhouette / Shutterstock.com

Maxeon Solar (NASDAQ:MAXN) is a company of visionaries dedicated to converting sunlight into electricity. They are taking bold steps to advance solar technology and affordability.

A recent milestone is its plan to build an advanced manufacturing facility in Albuquerque, New Mexico. This factory will use state-of-the-art TOPCon silicon photovoltaic cells and Performance Line panels, renowned for their power generation capacity. The goal is to meet the growing demand for domestically produced solar panels in the United States.

To finance this ambitious venture, they anticipate an investment of more than $1 billion and have applied for funding from the U.S. Department of Energy. Although the outcome is uncertain, they are determined to move forward.

Financially, they are also shining brightly. In the last quarter, they earned $56 million after covering production costs and $30 million before expenses and taxes, demonstrating their smart financial management. They are also fiercely protective of their innovations, as evidenced by their legal battle against Tongwei Solar for alleged use of patented technology. In conclusion, this makes MAXN stock one of those solar stocks to buy.

As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.