SolarCity Corp (NASDAQ: SCTY)
SolarCity is having an incredibly strong day in the market today, following up on gains that we've seen recently from the stock. Now the big question is, “Will the gains continue?” Today, we'll talk about why the stock is climbing, what we're seeing in the market today, and what we can expect to see from SCTY moving forward. So, let's get right to it...
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Why SCTY Is Climbing
As mentioned above, SolarCity is having a strong day in the market, and has seen gains over the past several trading sessions. So, what's causing the gains? Recently analysts at Stifel explained that they see the company making progress in monetization and will likely make several successful deals over the next six to nine months. The analyst firm also said that SCTY has absolutely no immediate funding needs, which will likely help as deals in the solar industry may be delayed due to risks associated with Sunedison. For me however, this isn't the only reason that I'm expecting to see gains.
You see, SCTY has made a name for themselves in the solar industry over the years, and compared to other solar companies, their finances are impeccable. The reality is that the world of energy as we know it is changing. Demand for clean energy is on the rise in a big way. In fact, last year was the first year that more solar systems were installed on homes than natural gas systems in the United States. This is a big step! Not to mention the conditions in the energy sector around the world. The reality is that the burning of fossil fuels is having an incredible impact on global conditions, and the world is working to move away from this habit. As such, we will likely see more demand in the solar industry moving forward than ever before. Considering the stance that SCTY has in the solar industry, it only makes sense that we will see the value of the stock climb as it produces larger sales volume thanks to rising demand in the sector.
What We're Seeing In The Market Today
One of the things that we learn as investors is that when trends form, they likely continue, especially when they have momentum behind them. The truth is that SCTY has incredible momentum at the moment, and that momentum is pointing upward. Considering that, we're seeing strong gains in the value of the stock today. Currently (10:50), SCTY is trading at $27.90 per share after a gain of $1.17 per share or 4.38% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively mixed opinion of what we can expect to see from SCTY. First and foremost, we're seeing strong gains today, and those gains will likely continue throughout the week. However, in the short run, fears with regard to the solar industry as a whole may push investors away. Nonetheless, that doesn't mean that SCTY isn't a good long-term play. The reality is, as mentioned above, the energy industry is changing and demand for solar will likely continue to rise. Currently, SCTY is positioned to take a large share of the future demand in the industry, and that will lead to strong sales, strong earnings, and ultimately strong long-term price movement.
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What Do You Think?
Where do you think SCTY is headed moving forward? Let us know your opinion in the comments below!
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