Rick Pendergraft's Avatar
published in Blogs
Dec 05, 2020

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.

Related Tickers: ENPH
John Jacques's Avatar
published in Blogs
May 16, 2022
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Edward Flores's Avatar
published in Blogs
Apr 29, 2022
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Sergey Savastiouk's Avatar
published in Blogs
May 16, 2022
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Sergey Savastiouk's Avatar
published in Blogs
Mar 14, 2023
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Dmitry Perepelkin's Avatar
published in Blogs
Mar 14, 2023
5 Habits that Lead to Successful Investing

5 Habits that Lead to Successful Investing

To consistently make money in this industry, you need emotional fortitude, an analytical mind, and a willingness to self-reflect. Despite trading and investing being two different activities, these principles can be applied to both.Conversely, investors with good habits often become great traders.  Rather than full sentences for titles, we’ve labeled each of our top-five investing habits using a single word principle.
Allana's Avatar
published in Blogs
Mar 23, 2023
What’s the Difference Between Data Analytics and Machine Learning?

What’s the Difference Between Data Analytics and Machine Learning?

Artificial intelligence (AI) technology is developing rapidly.Data mining can deliver raw numbers, but it does not necessarily provide actionable insights. Structure is necessary to taking abstract information and extracting commonalities, like averages, ratios, and percentages.
Sergey Savastiouk's Avatar
published in Blogs
Mar 13, 2023
4 Tips for Fast, Effective Stock Analysis

4 Tips for Fast, Effective Stock Analysis

With just a few clicks, an investor can search for individual stocks, categories of stocks, sectors, or investment themes, and then he or she can conduct a full range of technical and fundamental analysis within seconds.All powered by Artificial Intelligence.  Below, we give you 5 tips for fast, effective stock analysis using Tickeron’s Screener.
Sergey Savastiouk's Avatar
published in Blogs
Mar 20, 2023
5 Golden Principles in Investing

5 Golden Principles in Investing

You have enough faith in that stock, based on research, that the return will equal or exceed the investment.  Do unto others.The principles outlined here will ensure that happens.  Principle #1: Diversification Investors can’t be one-dimensional when constructing a portfolio.
John Jacques's Avatar
published in Blogs
Mar 24, 2023
If Hedge Funds are Using AI to Invest, Why Shouldn’t You?

If Hedge Funds are Using AI to Invest, Why Shouldn’t You?

Some of the world’s biggest financial institutions have devoted multi-million dollar budgets to developing algorithms that can find patterns in the market, identify trends, and perform automated trading designed to take advantage of even the smallest price movements. The AI revolution is so big that as it stands today, the world’s five biggest hedge funds all use systems-based approaches to trade financial markets.Indeed, quantitative trading hedge funds now manage $918 billion (according to HFR), which amounts to 30% of the $3 trillion hedge fund industry – a percentage continues to grow with each year that passes.
Sergey Savastiouk's Avatar
published in Blogs
Mar 15, 2023
The five most important Lessons Learned After 10,000 hours of Trading