Solar power companies aren’t receiving the same kind of investor attention as they were a year ago, but there’s still a strong argument for investing in bargain stocks while the market grows. Renewable energy generation is expected to overcome traditional sources like coal and gas by 2050. Companies that develop a strong footing now will be positioned to capitalize on growth. VivoPower International (NASDAQ: VVPR) is one pick that is worth a closer look.
VivoPower has a long term strategy to become a fully integrated power company. In 2016 the company was a developer and builder of solar projects. It also offered financing for other solar companies. By 2017 it was operating its own assets. In 2018 it invested in minority stakes in solar power plants. From 2019 onwards, it added recurring revenue from services like energy storage, demand response management, and digital insights. This strategy is designed to grow the company’s revenue, and it is working. In the 2019 fiscal year, revenue was up 16.02% while gross income was up 26.59%.
Investors who buy today will undoubtedly be speculating on growth for both the market and this company. However, it has the infrastructure and strategy behind it to be a major player. Based in the U.K., the company has already expanded to markets like Asia, North America, and Australia.
The low price makes this stock an excellent bargain, and a conservative holding would make sense in a portfolio focused on long term alternative energy growth.
- 1 Year Price Growth: 08%
- YTD Price Growth: 57%
- 3 Month Price Growth: -8.06%
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.