Navellier Growth: your source for market-beating growth stocks

 

As the Beatles once sang, here comes the sun. Not just in the United States, but across the globe, there's been a push to find energy sources not dependent upon current resources. Oil is a declining resource that seemingly becomes pricier by the minute. Coal, although plentiful, is a heavy pollutant. More and more scientists and governments are looking upward to harness the power of the sun. In the last few weeks we have seen several countries, including India and Spain, announce the construction of new solar plants to harness the sun's power to produce energy. Solar power can be turned into electricity or directly utilized to heat and cool or homes, run our hot water heater, cook food, virtually anything that oil and coal can do. Solar power is green power, that is to say it doesn't cause pollution or give off unsafe carbon gases. Many think that solar, along with nuclear power, is the wave of the future. Billions of dollars are being spent to develop new solar technologies and products to develop this green power source.

Naturally, if there is money flowing, our fundamental indicators have picked up on it. There are many public companies engaged in both the research and sales of solar technology. As money has flowed towards this industry, these companies' earnings and cash flows have risen, resulting in strengthening fundamentals, and thus, steady buying pressure.

One of my newest Blue Chip Growth stock picks is one of the leaders in this area. First Solar Incorporated (FSLR) makes solar panels that convert sunlight into electricity. The company was founded in 1999, and its growth has been tremendous. The company is the low-cost provider of thin-film solar electric power modules, producing them at about two thirds the cost of its competitors. As a result, earnings have grown almost ten-fold in the latest quarter and shows no sign of stopping. As a bonus, the company does most of its business in Germany and Spain and stands to benefit from the falling dollar.

Suntech Power Holdings (STP) is another one of my powerful Blue Chip Growth stocks that is in the solar industry. Its products are used in individual homes as well as for larger utility usage for wholesale generation of solar power. Although based here in the United States, Suntech does the bulk of its business in China right now and has recently expanded into Italy as well as Spain. Growth has been stupendous! Revenues are growing at better than 100% annually and so are earnings. Analysts are raising their estimates and right now the consensus is that earnings will double again next year and grow at an eye-popping 44% average for the next 5 years after that.

In addition to its semiconductor business, Cypress Semiconductor (CY) has a division that makes silicon solar panels–the key item I expect will drive growth at the company for years to come. Its SunPower subsidiary has been involved with large-scale projects in the United States, Spain, Germany and across the globe. The company just installed the largest solar photovoltaic system at an Air Force base in Las Vegas and expects to build systems at more military bases in the years ahead. Earnings are expected to almost double in the next year and also has a long-term growth rate forecast of over 40% a year!

Yes, here comes the sun and its bringing growth stock profits with it!

For my specific Buy Below prices for FSLR and STP check out the current issue of Blue Chip Growth at our subscriber-only website. (Not a subscriber?  Try a six-month, 100% risk-free trial. These solar plays are just two of the stocks helping us beat the market 3-to-1!)

Recent Stock Insights Articles:

04.16.08 - One Darling of a Stock
04.16.08 - Let's Play
04.07.08 - Strayer Education: Head of the Class!
04.02.08 - Investing in Gold: Barrick Gold Paves the Path to Profits
03.21.08 - The Only Building Boom Not Headed For a Bust

Visit the Stock Insights Archive
Visit our complete article archive