Recent market trends suggest that the best business venture to take in 2021 is the renewable energy sector, which doesn’t surprise many people as countries aim to transition to clean energy. As a result, many renewables projects have spurred in the last few months. However, in the investment world, all the investors aim to get the best businesses in a field, explaining why they often research and explore an area before pouring their money. Experts may claim that the renewable sector features the most potential in the current business ventures, but investors are out to venture into nothing but the best field.
As if investors are not already in a dilemma about the renewable energy stocks in the last few months, the renewable energy sector is at it again, gathering all the attention following President Biden‘s infrastructure plan amounting up to $2 trillion. It is a plan that focuses on updating the North American power grid and mass adoption of renewable energy. Besides, there is the American Job plan which features a 10-year extension on the tax credit investment.
Investors in the business were quick to recognize the potential Biden’s plan demonstrates in the solar stocks. However, identifying the best solar stocks to invest in is challenging and scary since the solar stocks have a reputation of burning investors in the years. Fortunately, Enphase Energy is a reliable solar stock that investors can explore.
Enphase currently has an impressive cash flow and despite analysts expected a stock sale of $0.40, the company surpassed its expectation to $0.50. Last year, the previous quarter recorded an impressive cash flow of $84 million, and the other part of the year resulted in $216.3 million.
Another company making impressive records is the top Enphase competitor, SolarEdge Technologies, with a total sales of $1.5 billion last year, almost twice the amount in Enphase. However, its cash flow was lower than Enphase, but it is a great place to invest your money.
Besides the outstanding cash flow in Enphase, the balance sheets suggest that the company is in a sound financial health state. Despite the pandemic in 2020 wrecking many firms, it was able to remain functional. Besides, its financial state allows it to seek expansion via acquisition in case of a great opportunity. Investors should let the price tag cloud their judgment since Enphase and SolarEdge stock trade are doing great than their records years ago.
Now is the best period for investors to invest in Enphase since the stocks have fallen by 7%. And being blinded by the latest underperformance would be a short-sighted move for any business person. Investors should choose this time since the stocks are available and affordable before things change.https://thetrustedchronicle.com/