Many Americans are looking for ways to save money and protect the environment as the threat of climate change intensifies and inflation rates surge to their highest levels since 1982.
One way for homeowners to begin addressing both of these issues at once is by installing solar panels.
According to a recent Forbes poll, 19% of Americans either already had solar panels installed or are in the process of doing so. Surprisingly, 48% of the 81% of poll participants who did not currently have solar panels stated they planned to purchase them in the future.
The remaining 48% that are curious about solar installations are squarely in the scope of SunPower Corporation (NASDAQ:SPWR), a solar tech and energy provider with growing operations in several U.S. states and investments in companies that operate outside the U.S.
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What happened: In 2021, SunPower attracted 19.7 thousand new customers, expanding its growth to 51% over the previous year. Moreover, the company has contracts with active construction communities to install its solar panels on new home builds.
“I am bullish on SPWR so long as the stock remains above $22.00-$23.00. The upside target is $35.00-$37.00,” said analyst Gianni Di Poce in his weekly “Benzinga Pro Insider Report.”
What’s more: SunPower recently partnered with IKEA in California to make home solar energy solutions easier to access. Members of IKEA’s loyalty program will be able to purchase home solar available through SunPower to generate and store their own renewable energy.
The company also stands to benefit from the Inflation Reduction Act, which sets aside $369 billion for investments in clean energy companies in the U.S.
Technicals: The company generated $1.32 billion in revenue in fiscal-year 2021, but still lost $37.36 million on the year.
Its valuation is modest, with Price-to-Sales coming in at 2.90, and its Book Value comes in at 2.37.
On its chart, SunPower just had a successful retest of former-resistance-turned-support of a saucer pattern. “This created a higher-low, from which prices rallied to a new high afterwards, fortifying the uptrend,” the analyst wrote.
Other analyst ratings: Morgan Stanley maintained an equal-weight rating on SPWR, while J.P. Morgan maintained an underweight.
