New Trade for December 2nd, 2020

Solar is now the cheapest and fastest-growing source of energy for generating electricity.  And that doesn’t even account for subsidies.  Renewable energy accounted for about 18% of large-scale electricity generation last year. 

Elon Musk believes that Tesla’s solar and energy storage business will grow faster than its EV business.  That may sound far fetched.  But then again, several analysts have said the same thing.   

This morning we are looking at pure play solar stock set to soar as the transition to renewable energy takes hold.  

Despite the growing competitive landscape, Sunrun Inc. (RUN) is still arguably the most dominant solar pure play in residential solar.   Sunrun is currently valued at $12.34 billion making it one of the largest solar companies in the industry.  The company recently completed its acquisition of Vivint Solar (VSLR), further cementing Sunrun as a leader in the fast-growing industry.  By acquiring Vivint, Sunrun ensures that its direct-to-home sales method will play a larger role in its business.

With only ~3% American households currently utilizing solar, the growth case for RUN is promising.  Especially considering that Sunrun and Vivant held a combined 17.5% share of U.S. residential solar market in 2019. The No. 3 player, Tesla, had a 4.6% market share.  

The consensus among analysts is that Sunrun Inc. is an overweight stock at the moment.  The current consensus among 11 analysts is to buy stock in Sunrun Inc.  This rating has held steady since November. Only one of the analysts rate the stock as Sell, 3 out of 11 have rated it as Hold with 7 advising it as Buy