The Rally in Renewable Energy Equipment Stocks Could Be Coming to a Halt
Since the bottom in March, all facets of the renewable energy industry have made huge gains. Some of the renewable energy equipment stocks have seen gains of 800% and more. While the gains have been impressive, the rallies could be coming to an end or seeing a pause at the very least.
Three companies in particular jumped out at me because all three have seen pullbacks in the current week. Those pullbacks have caused a bearish crossover in the weekly stochastic readings. Enphase Energy (ENPH), Plug Power (PLUG), and SunPower (SPWR) are all three seeing their stocks drop this week. All three have seen big gains in their stock prices since March, but Plug Power stands out among the three.
Plug bottomed at a price of $2.53 in March and it recently peaked at $28.70. That is a gain of 1,034% in nine months. The huge rally has put the stock in overbought territory based on the weekly stochastic readings and the 10-week RSI. The monthly versions of those indicators are also showing overbought levels. SunPower and Enphase are both in overbought territory based on the weekly and monthly indicators as well.
When I got the signals for the bearish stochastic crossovers on the three stocks, I pulled the three up on Tickeron’s Screener to see how the stocks performed in the various fundamental and technical categories. The first that jumped out was that all three stocks received “sell” ratings from the Tickeron Scorecard.
If we break down the ratings, Plug and SunPower both have four negative fundamental ratings compared to only one positive reading for each one. Enphase Energy does considerably better with three positive ratings to only two negative ratings. The only area where all three get negative ratings is in the Outlook Rating. Plug and SunPower both get poor ratings from their SMR Ratings and the P/E Growth Ratings. Enphase and Plug both get negative ratings in the Valuation Rating category. The only area where two of the three get a positive rating is in the Profit vs. Risk Ratings—both Plug and Enphase score well in that category.
The stocks do score better in the technical indicators. Both Plug and Enphase have three bullish signals and three bearish signals. SunPower has two bullish signals and four bearish signals. There are several areas where we see all three stocks getting the same reading. All three are getting bearish signals from the RSI, the MACD, and the Bollinger Band indicators. All three have gotten recent bullish signals from the Momentum and AROON indicators. Because of the big rallies, both Plug and Enphase get bullish readings on the Moving Average indicator.
Investor and analyst’s sentiment is quite different for the three companies. Analysts love Plug with nine “buy” ratings and only one “hold” rating. Enphase is slightly below average in this indicator with 10 “buy” ratings and seven “hold” ratings. SunPower is the one that is the least liked by analysts with only three “buy” ratings, seven “hold” ratings, and two “sell” ratings. What this tells us is that analysts are expecting to Plug to outperform the others while SunPower is expected to underperform.
SunPower also has the most pessimism from short sellers with a short interest ratio of 3.79. That reading is a little higher than the average stock. Enphase’s short interest ratio is at 3.0 which is right in line with average while Plug Power’s short interest ratio is below average at 1.78.
Here’s how the three stocks rank in the various fundamental and technical indicators from Tickeron.
ENPH's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for ENPH turned positive on August 12, 2025. Looking at past instances where ENPH's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 12, 2025. You may want to consider a long position or call options on ENPH as a result. In of 76 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
ENPH moved above its 50-day moving average on September 05, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for ENPH crossed bullishly above the 50-day moving average on September 04, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ENPH advanced for three days, in of 312 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 176 cases where ENPH Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 56 cases where ENPH's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ENPH declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
ENPH broke above its upper Bollinger Band on September 05, 2025. 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 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. ENPH’s price grows at a lower rate over the last 12 months as compared to 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 (5.750) is normal, around the industry mean (7.116). P/E Ratio (30.016) is within average values for comparable stocks, (116.158). Projected Growth (PEG Ratio) (0.649) is also within normal values, averaging (0.894). ENPH has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.030). P/S Ratio (3.655) is also within normal values, averaging (18.674).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ENPH’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 98, placing this stock worse than average.
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General Information
a manufacturer of solar micro-inverter systems
Industry AlternativePowerGeneration
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