4 Solar Stocks to Avoid Like the Plague in November By StockNews – Investing.com

4 Solar Stocks to Avoid Like the Plague in November By StockNews – Investing.com

The efforts of governments worldwide to reduce carbon emissions, and significant investments in the renewable energy industry, should drive the solar industry’s growth. But although major solar companies have the potential to overcome the challenges caused by supply chain disruptions, fundamentally-weak stocks Sunrun (NASDAQ:), Sunnova Energy (NOVA), Sunworks (NASDAQ:), and Solar Integrated Roofing (SIRC) could witness a downtrend in the near term. So, we think these stocks are best avoided now. Read on.Governmental efforts worldwide to achieve carbon-neutrality, increasing oil prices, and the recent passage of a $1.75 trillion infrastructure bill, which provides significant funding and tax credits for the renewable energy and electric vehicle industries, bodes well for the solar industry. The global solar energy market is expected to grow at a 20% CAGR to $200 billion by 2026.

Although ongoing supply chain bottlenecks could affect the industry’s production slightly in the near term, rising government support should help the industry grow significantly in the long run. Investor interest in solar stocks is evident in the Invesco Solar Portfolio ETF’s (TAN) 5.7% returns over the past month, versus the SPDR S&P 500 Trust ETF’s (SPY) 3.3% gains.