Solar stocks are sliding amid policy headwinds. Wall Street analysts say buy these names
Solar stocks tumbled on Monday after the fate of the Build Back Better plan, which includes billions of dollars for clean energy initiatives, was thrown into question as West Virginia Sen. Joe Manchin said he cannot vote in favor of the legislation.
The Invesco Solar ETF slid as much as 6% amid heavy declines across the sector. Sunrun fell about 11.5% at the lows of the day, while SunPower and Sunnova declined more than 7%. Enphase and SolarEdge both traded lower too. However, by 11:20 a.m. on Wall Street the group had recovered some of those losses, with Sunrun last down more than 5%.
But some Wall Street analysts believe the Build Back Better uncertainty was already reflected in solar shares, and pointed to several stocks that look especially attractive following the move lower.