Solar Stocks Surge (TAN, FSLR, YGE, CSUN, JASO, STP)

Published on Tuesday, 20 December 2011 17:25 Written by Paul Oldrini

New York, December 20th (TradersHuddle.com) – The solar sector was one of the biggest gainers in U.S. market, as investors made value buying in the stocks after the sector was hammered down so far this year due to sharp decline in the prices of solar modules and increase uncertainty in the European region. The overall industry is also suffering due to oversupply. Just a week ago, analysts at UBS issued positive notes on the sector, stating that demand in Europe to remain fairly solid: from 21GW in 2011 to a 25GW in 2012. The firm further added that, despite the suggested decline in solar installation in Europe, the EU targets of 2020 would still be met. Claymore/MAC Global Solar Index (ETF)(NYSE:TAN) soared 7.50% to closed at $2.73, after hitting a new 52-week low of $2.54 in the prior trading session, also boosted by the soaring shares of Canadian Solar. However, the ETF is still down over 62% for this year.

First Solar (NASDAQ:FSLR), the most cost efficient solar module manufacturer, was the top volume mover and soared 7.80% to $32.88. The stock crashed last week after reduced its earnings target for the FY2011 and also estimated significantly weak results for the FY2012. Yesterday, the stock logged a new multi year low of $29.87.

Yingli Green Energy (NYSE:YGE) was one of the biggest percentage gainers, soaring 16.10% to $4.11 on unusual volume. Analyst at UBS has recommended selling the stock, stating macro uncertainties and near-term earning risks

China Sunergy  (NASDAQ:CSUN) shares also bounced back 13.83% to end the day at $0.547. The company has eroded over 86% of its total market capitalization so far this year.

JA Solar Holdings (NASDAQ:JASO), a china based manufacturer of solar cells, was a top volume mover, rallying 13.82% to $1.40. UBS has provided it a short-term sell rating as the EPS is expected to decline from $1.01 to $0.72.

Suntech Power Holdings (NYSE:STP) also added 8.33% to $2.34. UBS recommends not buying in the short term but expects a recovery later in 2012.

And Canadian Solar (NASDAQ:CSIQ) soared more than 33%, posting one of the biggest gains in the NASDAQ. Shares jumped to $2.95 after the company and TransCanada announced a sales agreement for 86MW Solar PV Project portfolio in Ontario, Canada.