Goldman Sachs Group Inc (GS), SunPower Corporation (SPWR): Will SolarCity Earnings Keep the Stock on Fire?

Page 2 of 2

Moreover, competition is rising in the residential area. SunPower Corporation (NASDAQ:SPWR) has noted the value of residential and small-scale commercial installation in its overall business model, and its efficiency advantage in solar modules has given it a big edge over other solar players in the industry. SunPower Corporation (NASDAQ:SPWR) also has a lower cost of capital than SolarCity, giving it access to the funds to expand more quickly. Still, with a big first-mover advantage, SolarCity seems likely to fend off even giant First Solar, Inc. (NASDAQ:FSLR) if it ever decides to make a play toward the smaller-scale market — a prospect that seems unlikely given its current emphasis on large-scale projects.

In the SolarCity earnings report, watch to see how quickly the company is able to boost its installation base. Further upward revisions to installation goals will be key in determining whether the stock can keep up its strong performance since its IPO.

The article Will SolarCity Earnings Keep the Stock on Fire? originally appeared on Fool.com is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Goldman Sachs.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2