What’s the 12-Month Upside for Clean Energy Stocks?

Why the Iranian Election Has Crude Investors Worried

(Continued from Prior Part)

SolarCity 48% below 100-day moving average

SolarCity (SCTY) is trading 48% below its 100-day moving average. The stock has been in a continuous downtrend since January 29, 2016, when its 20-day moving average crossed below its 100-day moving average.

Normally, when a short-term moving average falls below a long-term moving average, a stock enters into a correction. SolarCity has been trading in the narrow range of $30–$35 for the past few weeks. Since January 14, 2016, the stock hasn’t been able to close above its 100-day moving average. On February 5, it fell below the price range of $30–$35. Since then, it’s been falling.

As of February 26, Plug Power (PLUG) was trading 1% below its 100-day moving average. EnerSys (ENS) was trading 10% below its 100-day moving average. The Guggenheim Solar ETF (TAN) and the Market Vectors Global Alternative Energy ETF (GEX) were trading 15.8% and 3.5%, respectively, below their 100-day moving averages on the same day.

Meanwhile, the PowerShares WilderHill Clean Energy ETF (PBW) was trading 6.2% below its 100-day moving average.

Wall Street analysts’ consensus estimates

Wall Street analysts’ consensus estimates suggest an average upside of 106% for FuelCell Energy (FCEL), SolarCity, Plug Power, and EnerSys over the next 12 months. FuelCell Energy and Plug Power could rise 212% and 42%, respectively, from their current levels. EnerSys could see a 26% rise, and SolarCity could see a 142% rise over the next 12 months.

Browse this series on Market Realist:

• Part 1 - Iran Elections Signal a Second Term for Rouhani

• Part 2 - Crude Woes Continue as Iran Grows Stronger

• Part 3 - Why Saudi Arabia May Be Worried about Rouhani’s Reelection