SunEdison Inc (NYSE: SUNE)
SunEdison has had an incredible time in the market as of late. Even after the Federal Reserve made the decision to increase its interest rate, SUNE was one stock that maintained exponential growth. So, what is it about this stock that has investors so excited and is that excitement likely to last? Today, I’ll answer that question.
SUNE & Other Solar Stocks Are Being Separated From The Energy Sector
The energy sector has been struggling for quite some time now – there’s no denying that. In late 2014, the global oil supply glut reached a breaking point, leading to massive declines in the value of the commodity. These declines had a domino effect on the overall energy sector. By mid-2015, even renewable energy companies, such as SunEdison, started to fall dramatically. However, SUNE is now climbing as we start to see a separation between renewable energy and the overall energy sector.
Years ago, we started to hear about the negative effect that the burning of fossil fuels has on the global climate. While these conversations have slowed since, it seems as though the topic is coming back to light and in a big way. As a result, we’re seeing overwhelmingly positive activity surrounding SUNE and other renewable energy companies. So, what’s causing the conversation to come back up again? Well, there are two big stories…
Paris Reaches A Landmark Deal With 195 Countries!
Last week, we heard about a landmark deal out of Paris. The government in Paris has set up a deal in an attempt to reduce the effects of greenhouse gasses on the global climate. Of course, this kind of deal is great for renewable energy companies and the stocks they are represented by, like SUNE. Under the 20 year long deal, 195 countries have agreed to work to reduce greenhouse emissions by taking advantage of solar, wind and water power! Every five years, these countries will report their efforts and the results of their efforts to move forward with reducing greenhouse gases. When this deal was announced, SUNE skyrocketed in the market as did many other solar and renewable energy stocks.
The US Government Is Lending A Hand To SUNE As Well
While the landmark deal in Paris is enough to send SUNE skyrocketing, it’s not the only piece of good news that the company has gotten recently. In fact, on Friday, the US Government completed a crucial vote that will likely lead to higher sales volume for SunEdison. Earlier in the week, Congress had reached a deal to extend a 30% federal tax credit for consumers and businesses that install renewable energy systems in their homes and offices. However, this deal had to be approved by other governmental bodies. On Friday, SUNE climbed in a big way after the Senate announced that it had passed the $1.1 trillion spending measure in a 65-33 vote! This was the final governmental body that needed to approve the measure. As a result SUNE is likely to see more sales, better revenue, and stronger earnings.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly positive opinion of what we can expect to see from SUNE. As renewable energy continues to be separated from the overall energy sector, we’re likely to see larger demand, higher sales volume, and ultimately investor excitement that drives the stock upward. At this point, if you don’t have SUNE in your portfolio yet, you may want to strongly consider adding it.
What Do You Think?
Where do you think SUNE is headed moving forward? Let us know your opinion in the comments below!
[Image Courtesy of Wikipedia]