Solar Stocks

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The Best Solar Stocks to Buy for 2010
Across the industry, solar stocks continue to turn around. Though 2009 numbers may not be near 2008 levels, it looks like a bottom has been established and companies are improving.

There are still some dogs with fleas, of course. Take First Solar (FSLR), which reported a huge revenue miss at the beginning of October and saw shares pushed down 15% in one day as a result. My Portfolio Grader stock ranking tool gives FSLR a D-grade due to weak sales and earnings performance, and you should definitely avoid this stock.

However, Portfolio Grader also identifies some really great solar companies right now. Here are my three favorites:

Canadian Solar (CSIQ) recently announced very strong third quarter results. Though net revenue was down compared to last year, Canadian Solar's net income was nearly double that of 2008. That's because the company's shipments on the quarter totaled 103 MW of solar cells compared to 60 MW last year. The company topped expectations on the quarter, making it an excellent buy right now.

Get my free report on Canadian Solar (CSIQ)

Trina Solar (TSL) is a standout stock based in China. The cost base is much more competitive for Asian solar companies, and this allows for bigger margins. TSL has recently raised shipment guidance for Q3 a few weeks back, and has seen a number of upwards revisions to earnings estimates in the last 30 days. Typically this means a big surprise is in order. This company reports earnings on Thursday, November 19, and I expect a great performance.

Get my free report on Trina Solar (TSL)

GT Solar (SOLR) is a very small operation, with a market cap of just 600 million. However, this allows the company to be innovative and flexible, keeping it ahead of some of the big players that have suffered from the industry's volatility. Insiders are saying that inventory depletion is across the whole solar sector has peaked, and that sales are about to pickup for solar stocks soon. This makes GT Solar a great buy since it can ramp up productions fast and capitalize on the conditions as soon as they become favorable. Invest very cautiously in this pick because it's an aggressive stock, but know that it has true breakout potential and could deliver big gains overnight.

http://navelliergrowth.investorplace.com/stocks/top-solar-stocks-csiq-first-solar-fslr-trina-tsl-gt-solr.html