Solar Stocks Up 40% YTD as Section 232 Tariff Decision Looms
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Solar stocks are showing aclear technical shift, breaking above a well-defined downtrend after more than five years of sustained pressure.
UBS analyst Catherine Gordon is attributing the surge in solar stocks to falling yields and renewed policy momentum.
A potentialSection 232 tariff announcementin mid-to-late June is adding fuel to the rally, withFirst Solarleading the charge.
The UBS Solar basket (UBXXSOL) is now up 40% year-to-date.
Gordon provided more context on what's powering UBXXSOL higher: Clean tech names are outperforming again on Tuesday, with solar leading higher alongside more speculative growth baskets as yields move lower.
The backdrop has been broadly supportive, with the UBS Solar basket (UBXXSOL) now up 33% MTD.
First Solar is the standout mover, with the stock trading around $268 and continuing to rally in anticipation of a potentialSection 232 tariff announcement in the near term.
Earlier today, Windham hosted Toyo Solar on a call, where the company indicated that mid? to late?June could be the timing for Section 232, with measures potentially including a minimum import price alongside tariffs.
There is also scope for domestic manufacturing investments to be used as an offset to tariff liability.
The prevailing dynamic has been "buy the rumor and buy the news," with momentum building into the expected policy update.
Beyond S232, the next key catalyst for First Solar (FSLR) is likely to be order commentary on 2Q earnings calls.
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