The booming solar energy industry in the U.S. has now 2 million solar installations across the country with 96% of the projects being small-scale and in residential rooftops. These small installations are mostly specialized by companies like Tesla (TSLA), Sunrun (RUN), and Vivint Solar (VSLR) while the bigger ones mostly belong to companies like First Solar (FSLR) heavily financed by utilities and asset owners like NextEra Energy (NEP) Partners and TerraForm Power (TERP).
Even though it took nearly 40 years to reach the 2 million installations, analysts believe that the next 2 million will take only four years creating more opportunities for investors.
According to the Solar Energy Industries Association (SEIA) data, California accounted for 51% of the first one million installations thereby making it the industry hub. For the remaining one million, 43% of the installations are scattered across states like Florida, Texas, and Minnesota.
New solar capacity is mostly composed of large-scale projects accounting for 58% of the 10.6 gigawatts of solar power installed for utility-scale projects in 2018. This presents opportunities for companies like First Solar, NextEra Energy Partners, and TerraForm Power if they get the upcoming big projects.
Overall, solar energy is starting to impact electricity production in a big way. In 2018, large solar projects accounted for 1.5% of the electricity produced in the U.S. and this was 37 times higher than what it was in 2011. If the current trend continues, it will take another two to three years to account for another 1% production and may even surpass coal in market share by the end of 2030.
Of the three mentioned companies, SunPower has the leading market share in the industry and is adding energy storage to more than one-third of commercial solar installs. First Solar is among the largest solar manufacturers in the world and expects to have $1.6 billion to $1.8 billion of net cash on the balance sheet at the end of 2019.
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where TSLA declined for three days, in of 268 cases, the price declined further within the following month. The odds of a continued downward trend are .
The 10-day RSI Indicator for TSLA moved out of overbought territory on April 30, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
TSLA broke above its upper Bollinger Band on April 29, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for TSLA entered a downward trend on April 26, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Momentum Indicator moved above the 0 level on April 29, 2024. You may want to consider a long position or call options on TSLA as a result. In of 73 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for TSLA just turned positive on April 25, 2024. Looking at past instances where TSLA's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
TSLA moved above its 50-day moving average on April 29, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where TSLA advanced for three days, in of 348 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TSLA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.905) is normal, around the industry mean (6.005). P/E Ratio (40.726) is within average values for comparable stocks, (18.064). Projected Growth (PEG Ratio) (2.067) is also within normal values, averaging (5.553). TSLA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.043). P/S Ratio (6.305) is also within normal values, averaging (74.209).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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