With significant growth in the solar energy industry, finding appealing bargain stocks is becoming rarer. Many investors are being forced to look outside the traditional bargain bin, which cuts off around $10. However, for those who are willing to go for the pricier picks, there are still options that can be considered bargains. Canadian Solar Inc. (NASDAQ: CSIQ) is one of them. This solar company has an implied upside and a strong presence in a growing industry.
Solar stocks are becoming more valuable as the industry grows. Solar is becoming more affordable for American households, and global demand is increasing. Renewable energy will outperform oil, gas, coal, and other traditional sources by 2050. Despite its price, the growth potential that exists in Canadian Solar makes it a bargain today.
Revenue has increased in four of the previous five fiscal years. In its most recent full year result, Canadian Solar reported sales growth of 10.44% and gross income growth of 21.56%. Most importantly, the company is in the black when looking at the gross margin of 20.70%. Even EBITDA indicates profitability with a margin just above 10%.
This company is well-positioned to be one of the industry heavyweights as the demand for fossil fuels decreases. Investors who can stretch to today’s price will find an excellent buy and hold opportunity.
- 1 Year Price Growth: 14%
- YTD Price Growth: -0.86%
- 3 Month Price Growth: 86%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.