Schaeffer's Top Stock Picks for '25

6 Surging Solar Stocks

News at home and abroad is helping to buoy JinkoSolar Holding Co., Ltd. (NYSE:JKS), Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE), and Trina Solar Limited (ADR) (NYSE:TSL)

Aug 25, 2015 at 2:07 PM
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News that China has instituted a fresh round of easing measures has not only helped to lift the broader equities market, but also shares of U.S.-listed China-based stocks. Combining this with the recently released details of President Barack Obama's clean energy initiative, and solar stocks JinkoSolar Holding Co., Ltd. (NYSE:JKS), Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE), and Trina Solar Limited (ADR) (NYSE:TSL) are having quite the day.

JKS, for example, has surged 26% to $19.78 to nab a highly sought-after spot on the Big Board -- and is attempting to make a move north of its year-to-date breakeven mark after hitting a nearly two-year low of $14.32 yesterday. The bull gap has sparked a rush of call activity in the security's options pits, with the contracts crossing at four times the average intraday pace. Drilling down, it looks like some speculators are betting on a round-number breakout over the next several weeks, buying to open JinkoSolar Holding Co., Ltd.'s September 20 calls.

YGE, meanwhile, has jumped 9.3% to trade at $0.87. The stock remains a long-term laggard, though -- most recently pressured by China's volatile price action -- down 63% in 2015. In the options pits, short-term speculators have shown a preference for calls over puts, per Yingli Green Energy Hold. Co. Ltd.'s Schaeffer's put/call open interest ratio (SOIR) of 0.47 -- which sits lower than 95% of all similar readings taken in the past year.

TSL has tacked on 13% to linger near $8.75, but is still 6% lower year-to-date. Along with sector peers SolarCity Corp (NASDAQ:SCTY) and Sunedison Inc (NYSE:SUNE), the stock bounced off a notable milestone yesterday (a two-year low of $7.15, to be specific). Short sellers have more than likely been keeping a close eye on this whipsaw price action. Short interest accounts for 15.3% of the stock's available float, or 6 times Trina Solar Limited's average daily pace of trading.

Looking elsewhere, this rally in solar stocks has spread to North America-based names, as well. First Solar, Inc. (NASDAQ:FSLR), for instance, is up 6% at $46.28, following a steep three-day sell-off, Canadian Solar Inc. (NASDAQ:CSIQ) has jumped 10.4% to $17.97, thanks to a bullish brokerage note, and a big purchase by Elon Musk has helped give SCTY a 1% boost to $44.32.



 
 

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