News Image

SunPower Is Ready To Power Up Triple-Digit Earnings Gains

Provided By MarketBeat

Last update: Sep 28, 2022

  • Solar stocks like SunPower are set to benefit from tax credits attached to the Inflation Reduction Act
  • Analysts see triple-digit earnings gains next year
  • Will the current sideways chart pattern lead to further price gains? 

SunPower Is Ready To Power Up Triple-Digit Earnings Gains
The sun is shining on solar stocks, such as SunPower (NASDAQ: SPWR) following the passage of the Inflation Reduction Act. During a market downturn, it’s critical to pay attention to companies showing fundamental and technical strength, as these could be among the next big winners in a bull rally. 

That’s where solar stocks come in.

Among other things, the bill offers tax credits and rebates to individuals and businesses that install solar energy gear. 

SunPower is not the only stock from its industry outperforming the broader market. Large-cap names like Enphase Energy (NASDAQ: ENPH) and First Solar (NASDAQ: FSLR) also show unusual strength.

SunPower is a mid-cap and is part of the S&P 400 Mid-Cap index, tracked by the SPDR S&P MIDCAP 400 ETF Trust (NYSEARCA: MDY)

The company manufactures photovoltaic solar systems, as well as battery-storage gear, mainly for home use. 

The stock advanced nearly 29% in July as big investors anticipated passage of the Inflation Reduction Act. It bounced nearly 18% higher in August as the Act was passed, and is up 3% so far in September, holding up much better than its index, which is down nearly 10% for the month. 

Rebounding After Losses

The company, which went public in 2005, limped along with losses from 2016 through 2020. That turned around last year, with net income of $0.21 per share. Analysts expect earnings to come in slightly lower this year, at $0.19 per share, but posting a strong rebound next year, to $0.64 per share, on expected sales due to the Inflation Reduction Act.

That would be a whopping gain of 237%. 

Analysts have a “hold” rating on the stock with a price target of $22.20, which would mark a downside of 9.72%, according to MarketBeat data.
SunPower Is Ready To Power Up Triple-Digit Earnings Gains

So what’s going on there, given that earnings are forecast to grow at a triple-digit rate?

First, we’re in a turbulent market that is seeing even strong earners get whipsawed on a moment’s notice, along with the broader market. Second, analysts are divided about some aspects of the company’s business model that relies on direct sales, rather than a subscription model that generates recurring revenue.

But overall, the trend seems headed in the right direction. When SunPower delivered its second-quarter earnings report early last month, the company said it added more than 19,000 customers, more than double the number from a year earlier. 

In the earnings conference call, CEO Peter Faricy attributed the gain to a boom in new home construction, many of which are using green technologies to appeal to younger buyers. Of course, incentives that existed before the Inflation Reduction Act also play a role. 

In the quarter, SunPower’s revenue climbed 60% to $417.8 million. Adjusted earnings came in at $0.03 per share, topping views of $0.05 per share, according to MarketBeat earnings data

On a non-adjusted basis, the company beat views by a penny. 

SunPower’s chart shows an essentially sideways pattern since mid-August. In a formation that began in April, the stock undercut its previous structure low, which can be a good start for a new rebound when the market eventually turns higher. 

Government Actions That Actually Help Stocks? 

Regulatory and governmental changes are certainly a driver of price growth in certain industries, whether or not some investors approve. One of the great lessons of investing is: Set opinions aside, whether pro or con, and watch what the stock and its industry are doing. 

If you purchase any stock, including SunPower or any other solar name, during a volatile market, be aware that even those with great prospects can get swept lower in a heartbeat. On the one hand, there is certainly an opportunity to scoop up shares at lower valuations right now. On the other, use caution about trying to catch the proverbial “falling knife.” 

ENPHASE ENERGY INC

NASDAQ:ENPH (7/11/2025, 8:07:38 PM)

After market: 41.8 -0.05 (-0.13%)

41.855

-1.12 (-2.59%)


COMPLETE SOLARIA INC

NASDAQ:SPWR (7/11/2025, 8:00:02 PM)

After market: 1.7 +0.03 (+1.8%)

1.67

-0.12 (-6.7%)


FIRST SOLAR INC

NASDAQ:FSLR (7/11/2025, 8:16:28 PM)

After market: 162.59 +0.15 (+0.09%)

162.44

-2.65 (-1.61%)



Find more stocks in the Stock Screener

ENPH Latest News and Analysis

ChartMill News Imagea day ago - ChartmillTop S&P500 movers in Friday's session

Uncover the latest developments among S&P500 stocks in today's session. Stay tuned to the S&P500 index's top gainers and losers on Friday.

Mentions: CF HAL ALB VTR ...

ChartMill News Image3 days ago - ChartmillWednesday's session: top gainers and losers in the S&P500 index

Wondering what's happening in today's session for the S&P500 index? Stay informed with the top movers within the S&P500 index on Wednesday.

Mentions: MNST MO HSY BAX ...

ChartMill News Image4 days ago - ChartmillTop S&P500 movers in Wednesday's pre-market session

Let's have a look at what is happening on the US markets before the opening bell on Wednesday. Below you can find the top S&P500 gainers and losers in today's pre-market session.

Mentions: IPG OMC CCI

ChartMill News Image4 days ago - ChartmillMarket Monitor News July 09 BMO (Moderna & Merit Medical System UP - Solar & Bank Stocks DOWN)

Wall Street Holds Its Breath: Tariff Tantrums, Solar Slaps, and a Surge from Moderna

Mentions: XOM GS BAC JPM ...

ChartMill News Image4 days ago - ChartmillTop S&P500 movers in Tuesday's session

Let's have a look at the top S&P500 gainers and losers one hour before the close of the markets of today's session.

Mentions: DOW NEM APA DVN ...

ChartMill News Image4 days ago - ChartmillDiscover which S&P500 stocks are making waves on Tuesday.

Uncover the latest developments among S&P500 stocks in today's session. Stay tuned to the S&P500 index's top gainers and losers on Tuesday.

Mentions: DOW NEM APA DVN ...

ChartMill News Image4 days ago - ChartmillThese S&P500 stocks are gapping in today's session

Wondering which stocks are making significant price gaps? Explore the S&P500 index on Tuesday to find the gap up and gap down stocks in today's session.

Mentions: NEM NKE PWR STX ...

ChartMill News Image5 days ago - ChartmillGet insights into the top movers in the S&P500 index of Tuesday's pre-market session.

As we await the opening of the US market on Tuesday, let's delve into the pre-market session and discover the S&P500 top gainers and losers shaping the early market sentiment.

Mentions: BAC FSLR AES NEE

ChartMill News Image9 days ago - ChartmillUncover the latest developments among S&P500 stocks in today's session.

Get insights into the S&P500 index performance on Thursday. Explore the top gainers and losers within the S&P500 index in today's session.

Mentions: BG CPB MKC PCAR ...

ChartMill News Image9 days ago - ChartmillTop S&P500 movers in Thursday's session

Join us in exploring the top gainers and losers within the S&P500 index in the middle of the day on Thursday as we examine the latest happenings in today's session.

Mentions: MOS BG CPB PCAR ...

ChartMill News Image11 days ago - ChartmillTuesday's session: top gainers and losers in the S&P500 index

Uncover the latest developments among S&P500 stocks in today's session. Stay tuned to the S&P500 index's top gainers and losers on Tuesday.

Mentions: DOW WMB PKG MHK ...

ChartMill News Image12 days ago - ChartmillMarket Monitor News July 01 BMO (Hewlett Packard Enterprise, SunRun UP - Enphase Energy DOWN)

Wall Street Keeps Climbing as Deals, AI Drama, and Trade Winds Stir Up the Market

Mentions: GS BAC JPM WFC ...

Follow ChartMill for more