Hey readers, we thought to start the week with a tinge of green, the cheerful sort! This #MarketMonday we’re looking at mid-cap clean energy companies. Yay earth! Read on for an analysis on their stock movements and fundamentals.
Solarcity is an American provider of clean energy sources, primarily solar energy, hence the namesake. While many investors were bearish on Tesla’s (NASDAQ:TSLA) pending acquisition of Solarcity (NASDAQ:SCTY), the SolarCity Corporation is still heading into the 2nd half of this year on a positive note as the stock is up 36.36% over the past 6 months.
According to Colin Rusch of Oppenheimer, “as asset financing capabilities grow less crucial to the business model, SCTY is seeking to differentiate through products, including energy storage, Silevo high-efficiency panels, and a potential future integrated roof offering,” the analyst wrote. SCTY remains forward looking, recent movements are considerably bearish, as the stock is -4.40% over the past 5 trading days. Looking a bit further out the stock is -3.85% for the month and 20.92% for the quarter. We advise caution moving forward, and Call Levels should be set with equal upsides and downside as an increasing number of analysts have downgraded SCTY amidst stock volatility and uncertainty.
Ormat Technologies Inc. (NYSE: ORA) is a provider of alternative and renewable energy technology, with an emphasis in geothermal energy, based in Reno, Nevada. For the three months ended June 30, 2016, Ormat’s total revenues were $159.9 million, up from $140.5 million in the second quarter of 2015, an increase of 13.8%. Electricity Segment revenues increased 14.4% to $104.0 million in the three months ended June 30, 2016, up from $90.9 million in the three months ended June 30, 2015. Product Segment revenues increased 12.7% to $55.9 million in the three months ended June 30, 2016, up from $49.6 million in the three months ended June 30, 2015. To date, ORA’s price has been hovering around US$47.61 up from its current position at $37.55 last year. Barring minor fluctuations, we advise our users to set call levels with minor upside. Looks good for green energy!
Brookfield Renewable Energy Partners LP (BEP) Earns “Buy” Rating from TD Securities (Published 10/8/2016)
Brookfield Renewable Partners LP (NYSE:BEP) is one of the largest pure-play renewable energy platforms easily accessible by investors, and it has been a serious contender in hydroelectric and wind energy for more than 20 years. BEP‘s stock had its “buy” rating reiterated by equities researchers at TD Securities in a research note issued to investors on Wednesday. Brookfield Renewable Energy Partners (NYSE:BEP) last released its quarterly earnings results on Thursday, August 4th. While the company’s quarterly revenues fell short of the consensus estimate, On average, equities analysts anticipate that Brookfield Renewable Energy Partners will post $0.92 earnings per share for the current fiscal year.
Oil prices have bottomed out yet again near $40 per barrel after tumbling more than 20 percent in the past two months into a bear market and fossil fuels no longer boast the same strong returns that once existed. Investment dollars this year have been moving towards alternatives like renewable energy. Is it too late to ride the energy wave? We don’t think so, but only time will tell!