Three Stocks Sold Off By Up to 23.97%
The solar energy stock rebound ended on Tuesday. Enphase Energy (ENPH) dropped by 23.97% while First Solar (FSLR) dropped by 17.89%. Republicans presented changes to the President’s tax and spending bill. The bill proposes phasing out solar and wind energy tax credits by 2028.
In the sector, firms like Array Technologies (ARRY), and SolarEdge (SEDG) also sold off.
Investors will sell their positions in solar and clean energy investments. In its place are hydro, nuclear, and geothermal power stocks. The bill proposed extending tax credits until 2036. “Dirty” oil and gas stocks should get a boost.
Energy firms that investors should consider include Chevron (CVX), Devon Energy (DVN), and Occidental Petroleum (OXY).
Investors should also prepare for a potential downturn in electric vehicle companies. They will not get tax credits, either. Be cautious when considering investments in Tesla (TSLA), Rivian Automotive (RIVN), or Lucid Group (LCID).
AES (AES) dropped by 8.12% to close at $10.53. The stock indicated a bullish multiple bottom at around $10.00. While it completed the first phase of its Bellefield project, the solar and battery-based energy storage solution is out of favor. Still, AES stock lost half its value in the last year despite risks being low.
