Solar stocks have failed to shine over the past 12 months despite a continuing shift to renewable energy sources and lucrative government incentives to install solar infrastructure. Disrupted supply chains, rising interest rates, and policy uncertainty all have presented challenges for this burgeoning sector.
The sector’s largest exchange-traded fund (ETF) by assets under management (AUM), the Invesco Solar ETF (TAN), has shed 34.1% over the past year. By comparison, the large-capitalization Russell 1000 Index has gained nearly 10.5%.
Below, we review the top three solar stocks with the best value, the fastest growth, and the most momentum, respectively. All figures are as of late August 2023.
Best Value Solar Stocks
The solar stocks presented in the table below have the lowest 12-month trailing price-to-earnings (P/E) ratio. This metric measures a company’s stock price relative to its earnings per share (EPS), providing insight into how much investors are willing to pay for each dollar of earnings generated. By comparing P/E ratios within the solar sector and against broader market benchmarks, investors can gauge the relative attractiveness of solar stocks for investment.
Best Value Solar Stocks
Price ($)
Market Capitalization (Market Cap) ($B)
12-Month Trailing P/E Ratio
Daqo New Energy Corp. (DQ)
35.4
2.7
2.6
JinkoSolar Holding Co. (JKS)
34.6
1.7
4.9
Canadian Solar Inc. (CSIQ)
32.1
2.1
7.2
Source: YCharts
Daqo New Energy Corp.: Manufactures high-quality polysilicon for the global solar industry. Specifically, the Chinese-based company produces ultra-pure polysilicon used in solar cells, modules, ingots, and wafers. The solar infrastructure maker announced in August that Chief Executive Officer (CEO) Longgen Zhang will step down due to personal reasons and be replaced by the vice chairman of the company’s board, Xiang Xu.
JinkoSolar Holding Co.: Specializes in the production of high-quality photovoltaic products. It offers offers solar modules, silicon wafers, solar cells, recovered silicon materials,…..
