SPWR Stock: If You’re Bullish on SunPower Stock, You Have to Read This

SunPower stockThis Could Be Big for SPWR Stock

It looks as if the solar power industry has gotten a second lease on life, as evidenced by the surge currently underway in renewable energy stocks this week. Shares of SunPower Corporation (NASDAQ:SPWR) are soaring. Owners of SPWR stock should take note.

SunPower is a massive international energy company with a market cap of approximately $3.8 billion. As a provider of solar technology to commercial, residential, and utility clients all over the world, this is easily one of the most robust energy companies on the market today. The company also focuses on the design, manufacturing, installation, maintenance, and monitoring of adjacent services.

Translation: this is a company that is on the up and it has the healthy financial balance sheet to prove it.

Big News from Congress

Recent developments in the fight against climate change have brought on quite a bit of excitement in the renewable energy field. Following some big news coming out of the climate talks in Paris this week, solar energy companies, in particular, shot up in value. (Source: “Solar Companies Surge as U.S. Tax Credit Brings Early Holiday,” Bloomberg, December 16, 2015.)

So what was all the commotion about?

What was recently revealed to have resulted from these discussions is a new bill expected to be introduced to the U.S. Congress, which effectively extends the 30% investment tax credit offered to solar power companies for another five years. This bill has important implications, most especially for investors and clients of SunPower. (Source: “Wind, Solar Companies Get Boost From Tax-Credit Extension,” The Wall Street Journal, December 16, 2015.)

Of course, the bill still requires approval in the House and Senate, as well as from President Barrack Obama himself. If it does end up getting signed into law, as many expect, much of the anxiety around the expiry of these tax incentives will be eliminated.

With that sort of wiggle-room, it’s more than possible that a surge in renewable energy investment will follow. If and when you have renewed interest in this kind of technology, it’s more than possible that the SPWR stock price will absolutely skyrocket.

The Bottom Line on SPWR Stock

With this sort of positive news, it’s no surprise that the SunPower stock price has been surging as of late. And when you stop to consider the company’s financial performance, there’s really no mystery here as to why both analysts and investors alike are raving about SPWR stock. It’s for this reason among others that I remain highly bullish on SunPower for 2016 and beyond.

Stay in the loop. Follow Peter on Facebook and Twitter.