Is SunPower Stock Ready to Lead the Solar Market?

  • SunPower manufactures solar panels and offers complete solar energy systems to homeowners and businesses.
  • SunPower delayed its full year 2023 Form 10-K, and Q1 2024 formed 10-Q reports.
  • SunPower may be a major beneficiary of the COP28 pledge, which involves over 110 nations promising to triple renewable energy capacity by 2030.

SunPower logo on smartphone screen

SunPower Co. (NASDAQ: SPWR) offers solar products, including high-efficiency solar panels and complete solar systems, to businesses and homeowners. SunPower manufactures its own photovoltaic (PV) solar panels, Maxeon solar cells with interdigitated back contact (IBC) technology, which are even more efficient than optimized passivated emitter and rear contact (PERC) panels. Maxeon panels absorb more sunlight as the entire front absorbs sunlight, which converts more photons into energy. SunPower claims to be the #1 rated solar company in the United States.

SunPower shares have been steadily climbing along with its peers in the oils/energy sector. It competes with other vendors like First Solar Inc. (NASDAQ: FSLR), Sunrun Inc. (NASDAQ: RUN), and Canadian Solar Inc. (NASDAQ: CSIQ).

The Catalyst for Solar Adoption with SunPower

Solar stocks are rebounding strongly in 2024. SunPower provides many reasons to choose solar power, from annual savings in the thousands to trimming electricity bills and receiving a solar federal tax credit and storage federal tax credit. The global decarbonization effort aims to slow the rate of global warming by 2030.

Global Renewables and Energy Efficiency Pledge

At COP28 in 2023, 118 countries committed to tripling global renewable energy capacity to 11 TW by 2030. However, China, India, South Africa, and Egypt did not sign the pledge. The goal is to limit global warming to 1.5 degrees Celsius, staying below 2 degrees Celsius.‚Äč

SPWR SunPower stock chart

SPWR Attempts to Trigger an Ascending Triangle Breakout

The daily candlestick chart on SPWR illustrates an ascending triangle pattern that has failed 2 breakout attempts as shares keep getting pulled back into the triangle range. The ascending trendline formed at $1.77 on April 23, 2024, comprised of higher lows on pullbacks against the flat-top upper trendline resistance at $3.75. SPWR is getting closer to the apex point, where a breakout will inevitably occur through the upper trendline or below the ascending lower trendline. The daily relative strength index (RSI) has been chopping around the 56-band. Pullback support levels are at $3.10, $2.62, $2.16, and $1.77.   

SunPower Delays Filing its Full-Year 2023 Form 10-K and Q1 2024 Form 10-Q

The company had previously disclosed that management concluded the company's disclosure controls and procedures, as well as internal controls, were not effective for the four quarters in 2023, specifically on January 1, April 2, July 2, and October 1. Due to material weakness in SunPower's internal control over financial reports, the company's remediation plan will be described in more detail on its Form 10-K for the period ending December 23, 2023. This will cause a delay in reporting its Q1 2024 Form 10-Q report. SunPower plans to restate the Affected Prior Period Financial Statements and file the 2023 Form 10-K and Q1 2024 Form 10-Q as soon as practical.

New Tariffs on Asian Solar Panels May Be Coming

The U.S. International Trade Commission (USITC) voted to continue anti-dumping and countervailing duty investigations into some solar imports coming from Malaysia, Thailand, Vietnam, and Cambodia. The ITC is reviewing the petitions by manufacturers alleging imports are selling at prices below cost to unfairly benefit from subsidies in the billions of dollars. Many of these subsidies are being offered directly by Chinese government entities. The ITC’s preliminary determination was that there was a reasonable indication of material injury to U.S. manufacturers.

This vote enables the U.S. Commerce Department to continue its investigation into whether international producers are dumping their solar products and attaining illegal government subsidies. This could lead to the collection of preliminary duties starting in July 2024.

SunPower Now Offers Tesla Powerwall 3 to Its Product Portfolio

On May 22, 2024, SunPower announced it would offer the Tesla Inc. (NASDAQ: TSLA) Powerwall 3 battery storage solution as part of its product portfolio. The Powerwall 3 has 11.5 KW of power and 13.5 kWh of energy to provide whole-home backup and efficiently capture solar energy. Pairing the SunPower Equinox solar system and Tesla Powerwall 3 makes sense for homeowners. SunPower also expanded its financing options. The company expects 25% of American homeowners who install rooftop solar panels will also add battery storage.

SunPower analyst ratings and price targets are on MarketBeat.

Stocks Mentioned in this Article

CompanyCurrent PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
SunPower (SPWR)$0.98-2.9%N/A-0.72Strong Sell$4.05
First Solar (FSLR)$220.63-0.3%N/A23.13Moderate Buy$273.96
Sunrun (RUN)$18.05+5.0%N/A-2.71Moderate Buy$21.42
Canadian Solar (CSIQ)$16.62+4.8%N/A5.77Hold$28.67
Tesla (TSLA)$224.84+4.1%N/A57.36Hold$201.18
This article was written by Jea Yu and first appeared on MarketBeat.com.