Shares of solar company SolarCity Corp. SCTY have surged 19.4% in the last two days from $28.76 to $34.35 on a vote of confidence by options trader Jon Najarian, who added the stock to his portfolio.
Who is Jon Najarian?
Jon Najarian is a trader, market analyst as well as the co-founder of optionMONSTER.com, a provider of market intelligence, commentary and training strategies. He participates in Fast Money on CNBC, an American financial stock trading talk show. Since 1982, he has been a member of the Chicago Board of Trade.
Reason for Buying the Shares
As stated to CNBC, Najarian had bought the shares after "spotting unusual options activity."
Till Tuesday, SolarCity’s shares have lost about 41.3% so far this year and are down 50.8% from its 52-week high of $63.79 attained on May 15. As of Dec 2, the company’s shares have lost about 35.8% so far this year.
Moreover, the company has been under pressure ever since it reported wider-than-expected third-quarter losses. However, the stock’s sharp pickup from the recent 52-week low raises optimism and Najarian feels that the company is ready to traverse the growth trajectory.
Q3 Performance
SolarCity, the largest U.S. rooftop solar installer, posted a wider-than-expected loss in the third quarter of 2015. Reported loss was also wider than the year-ago figure. This can be attributed to the company’s rising expenses. In marked contrast to the appalling loss, SolarCity’s total revenue beat the Zacks Consensus Estimate by 6.4%. On a year-over-year basis, reported revenues soared 95.1% on the back of increased operating leases and solar energy systems incentives as well as higher solar energy systems and components sales.
Zacks Rank
SolarCity currently has a Zacks Rank #4 (Sell). JA Solar Holdings Co., Ltd. JASO, ReneSola Ltd SOL and First Solar, Inc. FSLR are some better-ranked stocks in the solar industry. While JA Solar and ReneSola sport a Zacks Rank #1 (Strong Buy), First Solar carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment