Finance
Solar Stock Surge Fades on Search for Post-Lockdown Winners
- Portfolios are rotating from growth stocks to value bargains
- This is set to be the first down quarter for solar in a year
The Mount Signal Solar Farm in Calexico, California.
Photographer: Bing Guan/BloombergThis article is for subscribers only.
The stellar surge in solar-energy stocks is faltering as investors turn their focus to bargains that may benefit from the end of lockdowns. While some shares made gains today, market participants expect continued selling pressure.
Following a jump of more than 230% in 2020, The Invesco Solar ETF has fallen 14% this year, with members of the fund including Sunnova Energy International Inc. and Sunrun Inc. down more than that. The WilderHill Clean Energy Index, which skyrocketed almost sixfold in roughly 11 months through Feb. 9, has since fallen more than 30%. Both are set to have their first quarterly loss in a year.