CNBC’s Jim Cramer on Monday exposed his leading 3 solar stock plays.
“I think your portfolio needs some solar exposure, ideally with First Solar, Enphase or Generac,” the “Mad Money” host stated.
Cramer kept in mind that stocks in the alternative energy area have actually restored ground after losing momentum from swings that started late in 2015 driven by the November election of President Joe Biden, who made pledges to concentrate on green energy.
“We needed to wait for the big post-election shakeout before recommending the solar stocks,” Cramer stated.
Solar panel producer First Solar stock moved above $107 per share in January from about $60 in September. Shares in Enphase Energy, a house energy software application business, more than tripled in between those months.
Both stocks are down more than 12% from their peaks since Monday’s close.
“Since bottoming a couple months ago along with the rest of the hyper-growth cohort, the solar stocks have gotten their groove back. They’ve bounced hard off their lows, although they’re still down big from the peak,” Cramer stated. “I think that this group has a lot more room to run.”
Generac, the maker of backup power generators, is an exception as the stock started making brand-new highs last month.
Between September and February, Generac shares more than doubled prior to drawing back about 20% by mid-May. The stock closed at $448.15 on Monday, up 55% from its lows in May.
“Generac has been one of my favorite ways to play an increasingly unreliable electric grid, and while the stock looks expensive up here, management’s got a terrific track record,” Cramer stated.
“As much as I hate to chase, you’ve got my blessing, again, to put on a small position because I like this company so much and it’s right ahead of hurricane season. This market rewards good stocks even if they’ve moved up a great deal.”
