A surge was reportedly observed in the clean energy stocks on Wednesday, following the announcement of Georgia Senate results, giving a strong start to 2021 after a record-setting 2020.
While U.S. President-elect Joe Biden has kept climate as a key pillar of his agenda, the presence of a plausible Democratic control over the Congress is expected to make it convenient to formulate policies in support of renewables.
According to JP Morgan, investors in the clean energy space seem to concentrate on longer-term returns more now than at any point in the past numerous years, apparently resulting in further upside to the stocks in spite of the expected impact to short term projections.
As per reliable sources, the shares of Invesco Solar ETF traded over 8 per cent higher on Wednesday, with iShares Global Clean Energy ETF and Invesco WilderHill Clean Energy ETF shares each registering a surge of more than 6 per cent.
Meanwhile SunPower shares witnessed an upsurge of 15 per cent, shares of Enphase Energy Inc., climbed more than 9 per cent. Furthermore, shares of JinkoSolar Holding Co., Ltd., depicted a hike of nearly 6 per cent, with Sunworks, Inc., shares escalating by over 14 per cent.
Sources knowledgeable of the matter cite that these hikes apparently come on the back of several positive reports regarding the clean energy sector from firms such as JP Morgan and Goldman Sachs. As expressed by Paul Coster, a JP Morgan analyst, in the “Alternative Energy Outlook” for December, the sliding cost for every watt of RE places solar and wind energy as the lowest costing energy source in nearly 70 per cent of the world.
According to records, shares of First Solar soared more than 6 per cent on strong volume on Wednesday, in spite of a double-downgrade by Goldman Sachs for the firm on Monday, when it witnessed a fall in its share price from more than $104 to merely $91.66 for every share at Tuesday’s lows.
All in all, consolidated by strong outlooks from investment bank, as well as a newly elected Democratic Senate, stocks of solar are poised for recording sustained gains.