We recently published a list of 10 Best Wind Power and Solar Stocks To Invest In Now. In this article, we are going to take a look at where First Solar, Inc. (NASDAQ:FSLR) stands against other best wind power and stocks to invest in now.
According to a report by the World Economic Forum published on November 8, the US election result is expected to have a significant impact on the transition to renewable energy sources. Solar and wind energy stocks fell sharply following the election, as Donald Trump’s victory is anticipated to have a negative short-term impact on current climate policies. The president-elect has proposed policies that include increasing natural gas pipelines, ending offshore wind energy projects, and boosting fossil fuel production by easing restrictions on drilling on federal lands. He has also expressed intentions to withdraw the US from the Paris climate agreement and to support nuclear energy production.
Despite these challenges, analysts predict that the boom in renewable energy in the US is unlikely to be dramatically slowed. The Inflation Reduction Act passed during the outgoing administration, is expected to inject $1 trillion of spending into green energy, with estimates that 85% of the money has gone to districts that elected Republicans. This financial support, along with existing opposition to the curtailment of renewable energy, suggests that the long-term trajectory of the energy transition remains uncertain but potentially resilient.
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Trump’s Energy Policy and the Role of Elon Musk
In an interview with CNBC on November 13, Will Rhind, CEO of GraniteShares, discussed the potential implications of a Trump presidency on renewable energy such as wind and solar. Rhind noted that the playbook on energy policy was already seen in the previous Trump administration. The Trump administration has historically been more supportive of fossil fuels and less focused on renewable energy. Therefore, stocks and sectors favored by the Biden administration, such as solar and wind, might see a downturn.
Rhind suggested that the overall narrative may seem like it’s shifting back toward traditional energy sources. However, Elon Musk seems to be playing an integral role in the Trump administration, and he has been a proponent of climate policies, with his electric vehicle (EV) industry and other businesses, which suggests that energy transition policies may not be as impactful as some might expect today.
While the outcome of the US election and the anticipated policies of the new administration pose short-term challenges to renewable energy, the long-term outlook remains cautiously optimistic.
A solar panel farm with an orange sky illuminating the vast landscape.
Our Methodology
To compile our list of the 10 best wind power and solar stocks to invest in now, we used clean energy ETFs plus online rankings to compile an initial list of 20 wind and solar energy stocks. We then used Insider Monkey’s Hedge Fund database to rank 10 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
First Solar, Inc. (NASDAQ:FSLR)
Number of Hedge Fund Holders: 59
First Solar, Inc. (NASDAQ:FSLR) is a global leader and pioneer in the development and manufacturing of thin photovoltaic (PV) solar energy solutions. The company focuses on utility-scale solar power plants and providing energy solutions to utilities and large corporations. The company is headquartered in Tempe, Arizona, and has a global presence with manufacturing facilities in the United States, Malaysia, and Vietnam.
On November 30, Reuters reported that the US Commerce Department announced a preliminary decision to impose tariffs ranging between 21.31% to 271.2% on solar panel imports from Malaysia, Cambodia, Vietnam, and Thailand. Major companies like Jinko Solar and Trina Solar will be affected whereas US manufacturers such as First Solar, Inc. (NASDAQ:FSLR), who face competition from cheap imports will benefit from these tariffs. The tariffs were sought by the American Alliance for Solar Manufacturing Trade Committee.
With the imposition of tariffs, US solar manufacturers are likely to see an increase in demand for their products, which could lead to an increase in production and revenue for companies such as First Solar, Inc. (NASDAQ:FSLR). The final determinations on the tariffs are expected to be made on April 18, 2025, with the International Trade Administration set to finalize its determinations on June 2, 2025.
First Solar, Inc. (NASDAQ:FSLR) is focused on advancing solar technology to improve efficiency and reduce costs. The company is launching its CuRe (Copper Replacement) technology, which is expected to improve module efficiency and reduce material costs. Additionally, First Solar, Inc. (NASDAQ:FSLR) is developing perovskite solar cells, a new technology that has the potential to further increase efficiency and reduce costs. The company’s investment in research and development is expected to drive innovation and growth in the solar industry.
Overall, FSLR ranks 4th on our list of best wind power and stocks to invest in now. While we acknowledge the potential of FSLR to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FSLR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
