The solar sector slumped in the last couple months of 2024
Solar stocks fell across the board in November after the U.S. Presidential election results, with bullish traders abandoning the sector through the end of 2024. The new year brought some light through the clouds, however, as the Invesco Solar ETF (TAN) finished the first four trading days of the year higher, and is outperforming the S&P 500 Index (SPX) with a 6.6% year-to-date gain.
There were plenty of artificial intelligence (AI) innovations in the solar industry in 2024, and the cost and efficiency benefits are apparent. The continued AI boom appears to be providing tailwinds this year, and it wouldn't be surprising if traders started coming back to solar to buy in on the dip.
If last session is any indicator, analysts aren't convinced, however. Wells Fargo lowered its price target on several solar stocks yesterday, including Sunrun (RUN), Enphase (ENPH), Canadian Solar (CSIQ), and SolarEdge (SEDG). SEDG was also downgraded to "sell" from "neutral" at Citigroup, with the firm citing high operating costs.