FSLR, ENPH, and NEE are three oversold solar energy stocks to keep an eye on
The solar sector is filled with promise, but not necessarily profit at the moment. The solar exchange-traded fund (ETF) Invesco Solar ETF (TAN) is down 45.7% in the last 12 months, but are two of the funds' larger holdings ready to rally?
FSLR Testing Key Trendline
First Solar Inc (NASDAQ:FSLR) stock is down 2.6% to trade at $216.91 at last check, after a price-target cut from Baird to $307 from $344. The shares are pulling back from a June 12, 16-year high of $306.76, but the 80-day moving average looks ready to contain additional losses. So far in 2024, FSLR added 26%.
ENPH Cooling Off In Warmer Weather
Last seen down 1.2% to trade at $96.14, Enphase Energy Inc (NASDAQ:ENPH) stock is testing support at the $95 level, which contained pullbacks in December and January. The equity carries a 43.1% year-over-year deficit, and is today on track for a third-straight loss as it careens lower from its highest level since August.
Another Alternative Energy Stock to Monitor
NextEra Energy Inc (NYSE:NEE) isn't a part of TAN, but the company calls itself the "world's largest producer of wind and solar energy." NEE is up 0.6% to trade at $70.34 at last glance, struggling with overhead pressure from the 40-day moving average since taking a breather from its May 31, 52-week high of $80.47. Still, the utility stock sports a 15.4% lead so far in 2024.
Oversold Everywhere You Look
If there's a common thread between these three stocks, its their 14-Day Relative Strength Index (RSI). FSLR, ENPH, and NEE sport respective RSI's of 23, 16, and 27, all deep in "oversold" territory, indicating short-term rallies could be in the cards.