Global X Solar ETF (RAYS)

It's a distressing time for the climate industry in the U.S. as the current administration attempts to erase decades of energy transition progress. However, despite political pressure and related negative sentiment, the fundamentals for renewable energy keep it relevant in an age of increasing AI demand.

The spotlight that once shone on the solar stocks has dimmed in a significant way in the months leading up to the presidential election.

Wall Street delivered a muted performance last week due to a host of global tensions.

Weakness is an opportunity with solar stocks. Granted, there have been concerns that a Trump presidential win could derail clean energy stocks.

The Global X Solar ETF (NASDAQ: RAYS ) has slumped by more than 40% year-over-year (YOY), illustrating that investors have abandoned solar stocks. However, as an incurable contrarian, I believe the RAYS ETF's downturn signals a buying opportunity within the solar industry.

The increasing focus on finding alternative energy sources and diminishing global reliability on fossil fuels has resulted in clean energy investments surging $2 trillion. Capitalize on the growing commitment of global economies to combat climate change with clean energy ETFs.

It was all doom and gloom for solar stocks in 2023.  Rising interest rates had the biggest, most negative impact on the industry.

First Solar Q4 earnings has put ETFs with the highest allocation to the largest U.S. solar module manufacturer in focus.

Investors who piled into clean energy themes the last few years are experiencing some performance pain this year, as we appear to be experiencing a detour on the road to the clean energy transition. Related themes have been hard hit this year due to a confluence of events.

Most renewable energy stocks struggled in 2023. The iShares Global Clean Energy ETF (NASDAQ: ICLN ), which holds some 135 different clean energy public companies, fell more than 20% in 2023.

Use weakness in some of the hottest green stocks as an opportunity. According to Grand View Research, the global renewable energy market's value could reach $1.21 trillion due to a global shift towards low-carbon fuels and stricter environmental regulations.

In 2023, solar stocks met with several challenges. However, chances of lower rates in 2024, cheaper, growing importance of emission reduction goals and the likelihood of higher solar equipment production should boost the space next year.

Solar stocks have had a rough year. The Global X Solar ETF (NASDAQ: RAYS ), which holds about 54 different solar names, has plummeted 42.4% since the beginning of 2023.

First Solar beat bottom-line estimates but missed the same for revenues. It lifted the earnings per share guidance.

When it comes to solar stocks, the pullback has become overkill. Along the way, it's creating a blood-in-the-street opportunity for these top solar stocks to buy.

The third-quarter was an average-to-downbeat period for investors, mainly due to rising rates.