Today, I’m going to show you one of the best penny stocks you can buy right now. You see, this stock is a play on the solar industry, which is absolutely booming.
A lot has happened over a short period with respect to the solar power industry. For much of 2018, oil prices were soaring and reached their peak in November at close to $70. Most of this increase was due to higher interest rates from the U.S. Federal Reserve and a strong dollar.
As crude prices climbed, so did the price of solar stocks.
This wasn’t just a small bump, either. In just a few short months, there were jumps of 50% or more on some of the top solar stocks.
Sadly, this rally was short-lived.
Toward the end of 2018, there was a market rally in bonds and another interest rate hike took the dollar much lower.
The price of crude oil dropped when the dollar lost momentum and traders pulled out of solar stocks to lock in profits.
Market volatility didn’t help either. What began as a 50% bump in solar stocks ended up being losses of almost 20%.
This wasn’t the first time this has happened with solar stocks either.
There was a major rally with solar stocks several years ago when the price of oil was over $100 per barrel. The solar industry was young at that time, and some of the early investments were followed by share price losses.
However, investors were not fazed.
Compared to where they trade today, solar stocks were trading at prices that were three and four times higher.
So, why get excited about solar stocks now?
The truth is that we’ve seen this before, and there is still plenty of evidence that the next solar boom is right around the corner…
There Is a Massive Solar Boom on the Horizon
The solar industry has experienced some major breakthroughs in the past several years that make this the perfect time to invest
To start, there are more green initiatives than ever, which has been a windfall for solar companies.
And those initiatives will continue into the coming years.
Solar Estimate reports that solar energy is now the cheapest way to power a home.
According to some estimates, there were an estimated 2 million residential solar installations in the United States by the middle of 2018. This is a figure that is expected to double over just four years.
Plus, a stronger dollar environment and rising interest rates will be ideal for solar stocks.
Long term, an investment today could double or triple in value.
Knowing this, what are the best solar stocks to buy?
The market has been volatile of late, but the economy continues to do well. This is evidence for a stronger dollar in 2019 and good news for the solar industry.
When it comes to picking solar stocks, the best ones will be positioned so that they benefit from green initiatives. These are primarily companies that deal with solar installations.
As oil prices go higher, this will be an additional catalyst for these types of stocks to move up.
Here is our pick for the top penny stock to buy now in the solar sector.
This Is the Best Penny Stock to Buy Now in the Solar Space
This is a solar company that was founded in 2011 that’s focused on the installation of residential, commercial, and industrial solar systems throughout the United States.
Shares of VSLR were trading at over $15 when crude oil was priced over $100 back in 2014.
Today, you can pick up the stock for just over $4 per share.
When crude prices jumped again in the first three quarters of 2018, Vivint stock peaked just below $6 per share.
Granted, the company still isn’t profitable, which explains why it trades in the penny stock range.
The good news is that its revenue continues to grow, with analysts expecting sales to hit $291 million in 2018 and reach $331 million this year. This is a growth of 14% in just one year.
Since it’s already hit $6 in the past year, it can certainly do so again. Going from $4 to $6, investors would gain 50% on this profit play.
If crude oil prices soar once again, VSLR stock could even jump as high as $10 per share with a repeat of 2014 prices. This would represent a 150% gain over today’s price.
The difference is that the company is now pulling in more revenue and edging closer to being profitable.