Solar energy companies, such as Enphase (ENPH) and First Solar (NASDAQ:FSLR), have underperformed the S&P 500 year to date. But long-term the solar industry is expected see impressive growth. That’s because of massive investments as well as subsidies due to the shift towards renewable energy solutions. With that in mind, which of these solar stocks is currently the better buy?.Renewable energy stocks continue to remain attractive to investors as the shift towards clean energy solutions is accelerating at a rapid pace. Companies will benefit from economies of scale and reduced costs as well as support from governments in the form of subsidies and tax breaks.
These factors, among others, make solar stocks, such as Enphase (ENPH) and First Solar (FSLR), interesting companies to consider investing in. However, both Enphase and First Solar have trailed the broader markets in 2021. While the S&P 500 is up 17.3% year to date, Enphase has gained 1.5% while First Solar stock is down 6.2% in 2021.
So if you’re a contrarian investor, now could be a good time to add solar stocks to your portfolio. Let’s see which between the two is better positioned to make a comeback in the second half of this year.