Top Stocks to Watch — Solar Edition — June 12
Here is what I am looking at this week.
Now, realistically, this is more what I am watching than what I am buying. There is a chance if some of these setup perfectly that I may jump in, but right now with the state of the current market, I am taking either extremely small bets (0.005% of my portfolio as risk) or just not getting involved at all.
But here is what looks like it’s setting up, or showing strength in this current market. If anything, this helps me accumulate names to watch that could be potential leaders when the market turns.
In my weekly market overview, I talked about solar and China being in an interesting spot on the charts. So, here is my first top watch pick.
Daqo Energy Corp (DQ)
Daqo is an interesting pick. I know from the value side I was seeing it pop up on screens for the last six months or more. Since China stocks have been badly hit, Daqo falls into that potentially oversold category.
China has had an interesting rally the last few weeks, and solar has been strong — and as Daqo fits into both of those categories, it looks like a strong stock to keep on watch.
I love almost all the numbers, and with some potential P/E expansion in China this could explode.
The problem I see is the future projections right now are negative, which is not a great sign, and could be a warning for investors to not buy in.
Also it is a China stock so there is always risk of China and of unreliable accounting standards.
There is also political risk potentially as there are some rumors about how Daqo does business that could be damaging.
Enphase Energy (ENPH)
Enphase is another solar pick. This one however is based in the USA.
Strong numbers, strong projections with positive growth projected into the future. Solar is strong, and Enphase so far looks like a leader in the sector.
Enphase has also been building a stock base for the last year and a half, which could be a strong technical reason for a massive breakout and rise in price.
Solar itself is the future, and with energy costs rising it also puts solar in a position to be further funded, and the target for further government investment and benefits for renewable energy policies.
All in all, I like this pick. It fits the current worldview and represents needed innovation as well as future technology.
It has also been showing major strength during this overall market correction.
Honestly I have so many stocks on my watch lists right now. But I am finding it best to just be patient and watch. So I will continue to add new stocks to watch every week here, so follow me if you want that.
Otherwise, I don’t want to be overwhelming and post 20 stocks on here all at once. But hopefully as this bear market continues I can get each stock, and the new stocks I am seeing, on this list before it ends, and we can all have a juicy group of stocks to watch when the eventual market breakout back up happens.
Let me know what stocks you like as well and I will check them out!!!