Historically, tumultuous times offer some of
the best opportunities to buy stocks, and the market's
recent mess surely qualifies. There are many stocks that have
been unduly beaten down, and some investors think solar
component and systems maker
SunPower (Nasdaq: SPWRA) is one of them.
In our
Motley Fool CAPScommunity, nearly 89% of the 1,569
members rating the company are bullish, so there's no
shortage of reasons why SunPower will thrive, three of which
I've highlighted below.
But here at the Motley Fool, we're all for looking at both
the good and the bad sides of an investment. Once you're done
with this article, you can read the case
against SunPower, weigh in with your own comments, or
rate SunPower yourself
in
CAPS.
Strong U.S. presence: Big growth in U.S.
demand is expected in the years ahead as state and federal
initiatives push the country to the leading edge of the solar
revolution. SunPower's systems can already be found on the
rooftops of major U.S. retailers such as
Wal-Mart Stores (NYSE:WMT), and the company
has a strong pipelineof projects with utility companies
such as
Xcel Energy (NYSE: XEL). While Chinese
companies like
Yingli Green Energy (NYSE: YGE) want a
manufacturing footprint here in the U.S., SunPower plans to
significantly expand its domestic manufacturing
facilities.
Improving outlook: For SunPower, demand has
been increasing more than previously expected recently --
better than it was when the company announced its latest
earnings. SunPower expects a 40% increase in third-quarter
revenue and earnings per share compared with the second
quarter, and is also more optimistic about the financing
environment, as evidenced by a recent deal with
Wells Fargo (NYSE: WFC).
International growth: While U.S.-based
First Solar (Nasdaq: FSLR) is
hunting for growthin China, SunPower is setting up
manufacturing in Europe, so that products can be made closer
to the company's end customers. Like
Suntech Power (NYSE: STP), SunPower has
experienced sales
dropping off in Spain, and now countries such as France,
Italy, and Germany are becoming relatively more important
sources of revenue.
To see details of what CAPS members
are saying
nowabout SunPower, just click on over to
Motley Fool CAPSand have a look -- or add your own
thoughts directly to this story in the comments box
below.
This article was originally published as
3 Reasons to Buy SunPower Todayon
Fool.com
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