SolarCity (SCTY) Rises in Anticipation of Earnings Report

Jacob Harper  |

Despite a lack of quantifiable data justifying any kind of rapid movement, red-hot tech play SolarCity Corporation (SCTY) exploded in early trading on November 4, as investors gobbled up shares in anticipation of the company’s upcoming earnings report.

The Elon Musk-chaired solar panel company has been on a tear, gaining over 350 percent on the year. Like Musk’s primary business Tesla Motors (TSLA) , SolarCity is riding the green energy wave to become one of perhaps the two most-hyped stocks on the market. The potential for alternative energy companies has captivated the public. Investors are throwing money at green energy companies, and especially projects associated with wunderkind industrialist Musk’s name attached, in exponentially increasing numbers.

If the prior earnings pop can be attributed to anything, it is most likely speculation that SolarCity’s revenues and EPS have been sorely underestimated. Motley Fool asked the rhetorical question “Are SolarCity Analysts Asleep at the Wheel?” while DailyFinance surmised that SolarCity would best its rivals First Solar Inc. (FSLR) and SunPower Corporation (SPWR) , and gain a significant portion of the burgeoning American solar panel market in the coming years.

There might be some validity to that sentiment, as SolarCity recently popped after they gobbled up Zep Solar on Oct. 16. And while the company’s growth has not matched their meteoric stock rise, indications point to major revenue growth in the coming year, as evidenced by their projections of an 80 percent rise in installations in 2014.

Investors are buying the bull’s case on SolarCity, as volume was over double its average. The company saw its shares rise 16.95 percent in midday trading to hit $64.03 a share.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
SPWR SunPower Corporation 5.87 0.08 1.38 1,471,093 Trade
SCTY SolarCity Corporation n/a n/a n/a 0 Trade
JPNBL JP Morgan International Derivatives Ltd Indian Low Exercise Price Warrant 144A 3C7 On Nava Bharat Ventures Ltd 07/05/2013 n/a n/a n/a 0

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