5 solar stocks that should be on your radar

While the last month has seen an appreciable rise in regular stalwarts like ExxonMobil (XOM),
Chevron (CVX) and BP (BP), as the price of crude has lifted to $60 a barrel, oil and gas stocks are
still dangerous waters to navigate for the average investor. Short-term supply and demand dynamics
for crude oil are tough to read.

As an alternative, energy investors could take a look at solar stocks.

Skeptics will remember the beating that solar companies took in 2012 when the Chinese flooded the
market with cheap solar panels. Of course, the last few months have been no picnic for solar
investors, either. As the price of oil has dropped, the competitive advantage of solar versus fossil
fuels has also been negated somewhat, leading some observers to advise investors to short solar.

Related: The Greenest Oil Companies In The World

Looking at the sector as a whole, however, it appears that now might not be a bad time to get back
into solar; two of the most popular solar ETFs are indicating an uptrend. While the Market Vectors
Solar Energy ETF (KWT) is nowhere near the dizzying heights of its $211.50 a share peak in Feb
2011, the ETF is now trading at a respectable $86.10, near its 52-week high of $87.36. The fund is
up nearly 30% year to date. The Guggenheim Solar ETF (TAN) has done a little better, gaining 38%
since January 1.

The real money though, is likely going to be made in companies that outperform expectations. For
those looking to place their bets on specific solar companies rather than an index fund, here are five
to follow.

1. First Solar, Inc. First Solar (FSLR) develops, engineers, constructs and operates some of the
world's largest grid-connected PV plants in the world. The Arizona-based company has over 10
gigawatts installed globally. First Solar is known for the efficiency of its solar modules, with the
company's best production line now shipping solar modules with 16.3% efficiency.

First Solar is forming a yieldco with SunPower called 8point3 Energy Partners, which will hold long-
term contracts separate from the parent companies. (A yieldco is a publicly-traded company formed
to own operating assets that produce cash flow, which is then distributed as dividends). First Solar
also recently announced a strategic alliance with Caterpillar to manufacture a package for microgrid
applications featuring the Caterpillar brand.

Related: What Is Holding The Green Revolution Back?

2. SunPower Corp. SunPower (SPWR) is a U.S. solar panel maker that has high-efficiency panels
featuring SunPower's Maxeon cell technology. Based in Silicon Valley, SunPower generates over 18
million mega-watt hours of solar energy. In April SunPower announced a partnership with Apple that
will result in two solar power projects totalling 40 megawatts in China's Sichuan province.
SunPower has beaten Wall Street consensus and management guidance over the past eight
quarters, and analysts are expecting the firm to reach price targets of $35 to $36 per share.

3. SolarCity Corp. SolarCity (SCTY) is not a panel manufacturer, but rather, installs the panels made
by companies like SunPower and First Solar, tying together financing and installation to bring solar
power to residential and commercial buildings. SolarCity announced on May 2 it is offering to lease
Tesla Motors' solar-powered home battery storage unit, Powerwall, beginning in October. Analysts
at Deutsche Bank AG said on May 1 that the battery announcement by Tesla is among catalysts that
could drive the stock higher. The analysts placed a buy recommendation and set a price target of
$90.

Related: Warren Buffett Betting Big On Wind Energy In Nebraska

4. SunEdison Inc. Based in California, SunEdison (SUNE) develops and operates hundreds of solar
plants, representing a global PV capacity of 135.8MW. The company specifically provides
opportunities for Ontario firms to leverage rooftop space and vacant land for installation of solar
systems, through purchase or lease. SunEdison recently reported the interconnection of two new
solar plants in Ontario, the 17.9MW DC Bruining plant, and the 17.8MW Solar Spirit. SunEdison is
up 48% year to date after a big bounce last week.

5. SunTech Power Holdings Co., Ltd. Chinese company SunTech Power (STPFQ) supplies PV panels
in the multicrystalline and monocrystalline categories. SunTech has over 8GW installed PV power in
over 80 countries, the company states. Investors hoping to take advantage of the growth of solar in
China should consider SunTech as an investment vehicle.

In 2013 China announced a plan to more than quadruple its solar capacity to 35GW this year,
including 17.8GW in 2015. Year to date, SunTech's stock (which is traded over-the-counter) is up a
whopping 200%, with most of the appreciation happening in the last three months. As an over-th-
-counter stock, the risk is obviously higher than the previous four picks which trade on the NASDAQ
and the NYSE.

Andrew Topf is a journalist for Oilprice.com. He is not invested in any of the above-mentioned
securities.

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(New York) May 11, 2015: 12:17 PM ET

http://money.cnn.com/2015/05/11/investing/solar-stocks-first-solar/