SunnovaTrading at just above $10, solar company Sunnova Energy International Inc. (NYSE: NOVA) could rise back above its IPO price if current momentum holds up.

Sunnova is a solar panel and battery storage company that engages in the residential market. Most of its revenue is generated from within the United States, but the company has plans for international expansion, providing that it can stay on top of its current balance sheet.

This stock disappointed investors when it came to market in July. Shares have declined significantly from the original IPO price of $12, which was below the $18 that the company initially wanted to charge for its shares. While the early days have been rough, there is long term potential in the business model.

Revenue is growing as the company expands its U.S. business, but operating losses are high. The company reported $34.6 million of revenue from the second quarter, compared to $28.9 million a year ago. Net loss was reported at $49.8 million, compared to $9.2 million a year ago.

Sunnova costs are high because it is investing in technology, operations, and marketing. The latest data shows that the business has $1.77 billion in assets against $1 billion in liabilities.

Short term, revenue growth will likely not outpace losses. However, the company has a growing brand presence and proven residential solar generation and storage technologies. This gives it high long-term potential as more consumers move to affordable clean energy for their homes.

Priced at a bargain, Sunnova is worth considering for a diversified alternative stock portfolio.

Key Data:

  • 5 Day Price Growth: 63%
  • All Time Price Growth: -10.80%

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.