Raymond James Says Buy This Solar Power Stock on The Dip

NOVA is still struggling with pressure at the $42 level today

Deputy Editor
Jul 7, 2021 at 10:57 AM
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Sunnova Energy International Inc (NYSE:NOVA) is in the spotlight today, after Raymond James upgraded the stock to "strong buy" from "outperform." The analyst believes now is a good time to buy the dip on the renewable energy name. NOVA surged earlier in the session, but was last seen flat, off 0.7% to trade at $38.92.  

The stock has been struggling with pressure at the $42 level, which rejected its last two attempts at a rally. But while equity is still down 8.1% year-to-date, it's gained support at the ascending 10-day moving average, which has helped guide NOVA away from its six-month lows.

The brokerage bunch is overwhelmingly bullish on Sunnova stock, with all 13 analysts sporting a "buy" or better rating coming into today. Meanwhile, short interest has added a whopping 63.7% during the two most recent reporting periods, now making up 9.8% of the stock's available float. 

Over in the options pits, NOVA sports a 10-day call/put volume ratio of 18.03 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This shows a strong penchant for puts in the past couple weeks. 

Lastly, the stock's Schaeffer's Volatility Index (SVI) of 75% stands higher than just 14% of all other readings in its annual range. This implies that options players are pricing in relatively low volatility expectations at the moment. 

 

 

 

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