Solar power has the potential to disrupt the energy industry the same way the invention of the automobile changed transportation forever.
But too many investors have gotten burned by poor or downright fraudulent companies in the burgeoning solar industry.
We want to change that because the growth potential in this industry is simply too high to ignore. Today, we’re showing you our favorite solar stock of 2018, so you can profit from one of the best solar companies out there.
Estimates are that the market for solar energy alone will soar to $422 billion in 2022 from just $86 billion in 2015.
That’s a skyrocketing 390% increase in only seven years.
But it gets even better…
The EIA forecasts the solar industry will grow 500% by 2040, doubling in size.
Part of the reason is the rising use of energy across the globe, especially in nations where the population is rapidly growing, like China and India.
The EIA projects energy demand increasing by 25% through 2040.
While fossil fuels won’t go away entirely, renewable sources will be needed to meet this growing demand. In fact, Bloomberg reports that wind and solar are forecast to provide 64% of new energy coming online globally over the next 25 years.
And as solar power production soars to meet this demand, the right solar companies are sitting on a veritable goldmine.
That’s why we’ve done the research to find the one solar stock to buy right now.
Not only does this company have a unique, sustainable business model – it’s backed by some of the biggest investors in the world.
It’s why Wall Street analysts are projecting the stock to more than double in price over the next year…
The Best Solar Stock to Buy in 2018
Vivint Solar Inc. (NYSE: VSLR) focuses on local solar solutions, largely by selling solar systems directly to homeowners.
Vivint’s model is so unique because it owns the solar systems it installs in homes and sells the energy directly to the homeowner. Since homeowners don’t have to pay for the costs of a solar power upgrade up front and they don’t have to contract with a regional power provider, Vivint saves customers money on their electricity bills.
It also means Vivint has sustainable and predictable cash flows streaming in. And that cash flow is only growing as more customers subscribe to its business model.
Vivint has already installed solar systems on 126,800 homes across the United States, but its partnership with California’s largest home builder could push its growth into overdrive. California builds 80,000 new homes a year.
This kind of innovation and forward thinking is already catching Wall Street’s attention.
One of our reasons for choosing Vivint as a top solar stock is its long relationship with the Blackstone Group LP (NYSE: BX), one of the world’s leading institutional investors with more than $434 billion under management.
Blackstone bought Vivant in 2012 and helped take the company public. Blackstone still owns 70% of Vivint’s stock, which is hugely important, considering Vivint’s share price plunged after the IPO.
In the year of its IPO, VSLR sold at $16 per share. Right now, it sells at $5.25. The main reason the stock dropped was thanks to a failed merger with SunEdison, the scandal-plagued solar company that filed for bankruptcy two years ago.
While Vivint had nothing to do with SunEdison’s problems, investors lost their enthusiasm.
But Blackstone did not sell a single share.
That tells us one of the best private equity firms in the world believes this company has serious potential. Blackstone won’t make a penny on the company until its share price reaches at least $16 a share, and we expect it could run even higher.
JMP Securities and Guggenheim both just upgraded Vivint stock to a “Buy” over the summer.
Analysts are forecasting Vivint’s revenue to jump more than 60% by next year, propelling its stock from $5.18 a share to $11.00 a share, a 112% gain for shareholders.
Best of all, Vivint’s stock has a Money Morning VQScore™ of 4. That’s a perfect score and one of the best signals we have that its share price could soar.
Source: Money Morning