SPWR - Why Solar Names SunPower Sunrun and Canadian Solar Sank This Week
2023-10-06 07:30:00 ET
Shares of solar-oriented stocks SunPower (NASDAQ: SPWR) , Sunrun (NASDAQ: RUN) , and Canadian Solar (NASDAQ: CSIQ) were plunging this week, with these three stocks down 11.7%, 20.3%, and 12.5%, respectively, through Thursday trading, according to data from S&P Global Market Intelligence .
It wasn't particularly difficult to understand why these stocks took it on the chin. Long-term interest rates surged this week, in a continuation from the prior week after the Federal Reserve's latest meeting on Sept. 20. The rate volatility led several Wall Street analysts to downgrade the solar sector broadly and some of these names specifically in recent days.
While these three companies each serve the solar industry in slightly different ways, all are harmed by rising rates, with Sunrun's model especially affected.
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Why Solar Names SunPower, Sunrun, and Canadian Solar Sank This Week