The UN wants to reflect sunlight back into space in order to cool the earth — but some companies are harnessing it instead. Here are 3 high-flying solar stocks that Wall Street likes

The UN wants to reflect sunlight back into space in order to cool the earth — but some companies are harnessing it instead. Here are 3 high-flying solar stocks that Wall Street likes

The UN wants to reflect sunlight back into space in order to cool the earth — but some companies are harnessing it instead. Here are 3 high-flying solar stocks that Wall Street likes

Temperatures are rising, and the United Nations is sounding the alarm.

“Unless drastic cuts in greenhouse gas (GHG) emissions are implemented immediately, global mean warming is likely to exceed the Paris Agreement target of 1.5°C above the pre-industrial level within the next 10–15 years,” the UN says in a new report.

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To try to solve the problem, the organization is exploring Solar Radiation Modification (SRM), which aims to cool the planet rapidly by reflecting sunlight into space.

“SRM is the only known approach that could be used to cool the Earth within a few years,” the report points out.

But the technology is not ready for deployment just yet.

“There’s been a great deal of headway in SRM research and important advances in modeling, but we need far more empirical evidence on the risks and potential consequences before exposing our only atmosphere to SRM technologies,” says Andrea Hinwood, chief scientist of the United Nations Environment Programme in a press release.

To be sure, the sun is vital to life on earth, and it serves as a significant source of energy. Given the ongoing energy crisis, it might be wise to consider harnessing the power of the sun.

Luckily for that, we already possess the necessary technology. Here’s a look at three solar stocks that are firing on all cylinders. Wall Street also sees upside in this trio.

Enphase Energy

Enphase (ENPH) is one of the world’s leading suppliers of microinverter-based solar and battery systems.

The company has delivered outsized returns to investors. At the beginning of 2020, shares were trading at around $29 per share. Today, they’re at $208.

That’s a gain of over 600%.

As you’d expect from this kind of share price performance, business is booming. In Q4 of 2022, Enphase generated $724.7 million of revenue, up 76% year-over-year and marking a new quarterly record for the company.

Citi analyst Vikram Bagri has a ‘buy’ rating on Enphase and a price target of $285, implying a potential upside of 37%.

First Solar

First Solar (FSLR) produces solar panels for use in utility-scale solar power plants.

It’s another player in the segment that’s defying the stock market’s selloff.

Over the past 12 months, First Solar shares surged 170%, in stark contrast to the S&P 500’s 8% decline during the same period.

In 2022, the company generated $2.6 billion in net sales. Management has provided net sales guidance of $3.4 billion to $3.6 billion for 2023.

Wells Fargo analyst Michael Blum has an ‘overweight’ rating on First Solar and a price target of $233. Since shares trade at around $203 today, the price target implies a potential upside 15%.

Read more: Here’s how much money the average middle-class American household makes — how do you stack up?

Tesla

Solar is not probably not the first word to come to mind when people think of Tesla (TSLA) — the company’s primary business is making electric vehicles.

However, Tesla deserves a spot on this list because it acquired SolarCity in 2016. The company has since integrated solar energy into its broader mission of accelerating the transition to sustainable energy.

Tesla offers solar panels for both residential and commercial use, as well as energy storage solutions like the Powerwall and Powerpack.

The company is contributing to the adoption of solar energy.

“Despite supply chain challenges, we deployed 348 MW of solar in 2022, the highest deployment since 2017,” Tesla said in its latest quarterly update.

Morgan Stanley analyst Adam Jonas has an ‘overweight’ rating on Tesla and a price target of $220 — roughly 23% above where the stock sits today.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Source: https://finance.yahoo.com/news/un-wants-reflect-sunlight-back-110000332.html