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Investors looking for stocks in the Alternative Energy - Other sector might want to consider either Ameresco (AMRC) or Ormat Technologies (ORA). But which of these two stocks presents investors with the better value opportunity right now?

FRAMINGHAM, Mass.--(BUSINESS WIRE)--Ameresco's Lou Maltezos wins a Gold Stevie Award for his leadership in driving measurable results across public sector and K-12 energy infrastructure.

FRAMINGHAM, Mass.--(BUSINESS WIRE)--Ameresco appoints Brian Cox to its Board, adding data center energy infrastructure expertise to support reliable power and modernization.

FRAMINGHAM, Mass. & PHILADELPHIA--(BUSINESS WIRE)--Ameresco installs rooftop solar across two Philadelphia campuses, strengthening energy resilience and supporting Pennsylvania's energy goals.

On June 30, 2026, Ameresco Inc (AMRC) shares rose 3.9% today, bringing the current price to $27.60. The stock has experienced a 52-week range of $15.01 to $44.9

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Advanced Metering Infrastructure is expected to deliver accurate, timely water usage data to Utilities and Residents alike

FRAMINGHAM, Mass. & GREATER HOUSTON, Texas--(BUSINESS WIRE)--Ameresco, Inc., (NYSE: AMRC), a leading energy infrastructure solutions provider, today announced the execution of two Advanced Metering Infrastructure (AMI) contracts with the cities of Baytown and Shenandoah, Texas, representing a combined investment of more than $5 million in modernized water system technology.

Ameresco’s AMI projects in Baytown and Shenandoah will modernize water infrastructure, improve system visibility, support faster leak detection, and provide residents with more accurate, timely water usage data.

Share By providing near real-time usage information and proactive alerts, AMI enables the cities to deliver more responsive customer service while helping residents better understand and manage their utility consumption. Together, the Baytown and Shenandoah projects reflect a significant investment in smart water infrastructure across Texas, delivering measurable benefits for utilities and residents alike, including:

Modernization of water metering infrastructure using AMI technology resulting in reduced operational costs Improved system visibility through hourly consumption data and enhanced operational insight Faster leak detection and proactive monitoring, supporting water loss reduction & environmental stewardship Increased customer transparency through access to accurate, timely water usage data, building confidence in billing accuracy and strengthening public trust in utility operations The City of Baytown will be rolling out a phased deployment of water meter infrastructure starting with its residential meters. The project will enhance the City’s ability to quickly respond to citizens’ inquiries, improve meter accuracy from meters past their useful life, and reduce the need for manual meter reading. Increased data visibility will also help streamline utility operations while supporting long-term water conservation efforts, improved leak detection, and future infrastructure planning.

Shenandoah, who was faced with an Automatic Meter Reading (AMR) system that had reached the end of its useful life, turned to Ameresco to help them select the right AMI solution. Working closely with city staff, Ameresco developed a turnkey AMI solution to address aging metering infrastructure and improve customer service. The project includes the replacement or retrofit of more than 1,700 water meters with solid-state meters and AMI endpoints, improving accuracy and operational efficiency. Through reliable, high-resolution consumption data, the system will enhance billing accuracy and provide residents with transparent access to their water usage via a customer portal.

Both projects also integrate the AMI system with each City’s utility billing platform and include system software, data integration, and long-term operational support to ensure sustained performance.

“These projects reflect the growing focus across Texas communities on investing in water infrastructure that delivers real, operational value today,” said Louis Maltezos, Co-President of Ameresco. “By deploying AMI technology in Baytown and Shenandoah, we’re helping cities improve efficiency, strengthen customer trust, and better manage one of their most critical resources.”

“This is exactly the kind of investment that strengthens Baytown’s foundation,” said Jason Reynolds, Baytown’s City Manager. “By modernizing our water infrastructure with AMI technology, we are gaining real-time, data-driven visibility to operate more efficiently, detect issues faster, and plan smarter for the future.”

Reynolds added, “For the first time, Baytonians will have direct access to their own water usage data, bringing greater transparency and a stronger connection to how their city serves them.”

“Investing in AMI technology allows Shenandoah to modernize critical infrastructure while improving service for our residents,” said Sam Masiel, Shenandoah’s City Administrator. “With near real-time data and enhanced system visibility, we can reduce water loss, respond faster to issues, and deliver a better overall customer experience.”

Together, these projects demonstrate how targeted AMI investments can help municipalities modernize critical infrastructure while laying the foundation for more efficient, resilient water systems across Texas.

To learn more about Ameresco’s AMI and Automatic Meter Reading (AMR) solutions, visit https://www.ameresco.com/advanced-metering-infrastucture/.

About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading energy infrastructure solutions provider dedicated to helping customers reduce costs, enhance resilience, and decarbonize to net zero in the global energy transition. Our comprehensive portfolio includes implementing smart energy efficiency solutions, upgrading aging infrastructure, and developing, constructing, and operating distributed energy resources. As a trusted full-service partner, Ameresco shows the way by reducing energy use and delivering energy infrastructure solutions to Federal, state and local governments, utilities, data centers, educational and healthcare institutions, housing authorities, and commercial and industrial customers. Headquartered in Framingham, MA, Ameresco has more than 1,500 employees providing local expertise in North America and Europe. For more information, visit www.ameresco.com.

The announcement of a customer’s entry into a project contract is not necessarily indicative of the timing or amount of revenue from such contract, of Ameresco’s overall revenue for any particular period or of trends in Ameresco’s overall total project backlog. This project was included in Ameresco’s previously reported awarded backlog as of May 31, 2026.

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Recognized for advancing intelligent microgrid systems that enhance energy resilience, support decarbonization, and ensure operational continuity

, /PRNewswire/ -- Frost & Sullivan is pleased to announce that Ameresco has received the 2026 North America Technology Innovation Leadership Recognition in the Microgrid sector. Frost & Sullivan recognized Ameresco for its ability to design, deploy, and operate advanced microgrid systems that integrate distributed energy resources, energy storage, and intelligent controls to improve energy resilience, support decarbonization, and ensure operational continuity across mission-critical applications. This recognition highlights Ameresco's consistent leadership in driving measurable outcomes, strengthening its market position, and delivering customer-centric innovation in an evolving competitive landscape.

Frost & Sullivan evaluates companies through a rigorous benchmarking process across two core dimensions: strategy effectiveness and strategy execution. Ameresco excelled in both, demonstrating its ability to align strategic initiatives with market demand while executing them with efficiency, consistency, and scale. "Building on this technological foundation, Ameresco develops and deploys advanced microgrid systems that function as intelligent energy platforms. Through integrated control architectures, real-time monitoring, and lifecycle optimization, these systems dynamically manage energy flows, enhance system reliability, and reduce dependence on centralized infrastructure," said Chippy Alphons Augustine, Research Analyst at Frost & Sullivan.

Guided by a long-term strategy focused on energy resilience, distributed energy infrastructure, and customer-centric project delivery, Ameresco has successfully expanded its microgrid footprint across federal, municipal, utility, and commercial markets. The company's continued investment in advanced microgrid technologies and integrated energy solutions has enabled it to scale deployments across North America while addressing evolving customer requirements for reliability, energy security, and sustainability.

Technology leadership remains central to Ameresco's approach. Its suite of integrated microgrid solutions addresses the full spectrum of modern energy needs, offering flexibility, scalability, and high-performance energy optimization. Ameresco's technology-agnostic approach enables the integration of renewable generation, energy storage, and dispatchable energy resources into site-specific microgrid configurations tailored to customer operational requirements.

"We're honored to be recognized by Frost & Sullivan for our leadership in microgrid innovation," said Nicole Bulgarino, Co-President of Ameresco. "We believe the future of power must be more resilient, intelligent, and adaptable, and we remain committed to helping our customers modernize their energy infrastructure in ways that strengthen reliability, support sustainability, and create lasting value."

Ameresco's unwavering commitment to customer experience further strengthens its position in the market. Its integrated delivery model combines project development, financing, engineering, construction, and long-term operations, enabling customers to realize value throughout the project lifecycle. Through real-time system visibility, operational oversight, and high levels of system performance, the company continues to meet the needs of its expanding customer base. The company's deployment portfolio spans federal agencies, municipalities, utilities, and commercial customers, including mission-critical environments where reliability and energy security are essential. Its technology-agnostic approach and focus on localized, mission-critical deployments have been key to delivering long-term value across diverse sectors.

Frost & Sullivan commends Ameresco for setting a high standard in competitive strategy, execution, and market responsiveness. The company's ability to combine technology innovation, disciplined execution, and long-term operational expertise is helping advance resilient energy infrastructure solutions that address the evolving needs of modern power systems.

Each year, Frost & Sullivan presents the Technology Innovation Leadership to a company that demonstrates outstanding strategy development and implementation, resulting in measurable improvements in market share, customer satisfaction, and competitive positioning. The recognition identifies forward-thinking organizations that are reshaping their industries through innovation and growth excellence.

Frost & Sullivan Best Practices Recognition

Frost & Sullivan's Best Practices Recognitions honor companies across regional and global markets that exhibit exceptional achievement and consistent excellence in areas such as leadership, technological innovation, customer experience, and strategic product development. Each recognition is the result of a rigorous analytical process in which Frost & Sullivan industry experts benchmark performance through comprehensive interviews, deep-dive analysis, and extensive secondary research. The goal is to identify true best-in-class organizations that are driving transformative growth and setting new industry standards.
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Contact:
Ashley Shreve
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Media Contact:
Ameresco: Leila Dillon, 508-661-2264, [email protected]

About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading energy infrastructure solutions provider dedicated to helping customers reduce costs, enhance resilience, and decarbonize to net zero in the global energy transition. Our comprehensive portfolio includes implementing smart energy efficiency solutions, upgrading aging infrastructure, and developing, constructing, and operating distributed energy resources. As a trusted full-service partner, Ameresco shows the way by reducing energy use and delivering energy infrastructure solutions to Federal, state and local governments, utilities, data centers, educational and healthcare institutions, housing authorities, and commercial and industrial customers. Headquartered in Framingham, MA, Ameresco has more than 1,500 employees providing local expertise in North America and Europe. For more information, visit www.ameresco.com.

SOURCE Frost & Sullivan

Bloom Energy (BE - Free Report) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +388.89%. A quarter ago, it was expected that this developer of fuel cell systems would post earnings of $0.25 per share when it actually produced earnings of $0.45, delivering a surprise of +80%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Bloom Energy, which belongs to the Zacks Alternative Energy - Other industry, posted revenues of $751.05 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 50.78%. This compares to year-ago revenues of $326.02 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Bloom Energy shares have added about 170.1% since the beginning of the year versus the S&P 500's gain of 4.8%.

What's Next for Bloom Energy?While Bloom Energy has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Bloom Energy was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.24 on $675.12 million in revenues for the coming quarter and $1.44 on $3.27 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Alternative Energy - Other is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Ameresco (AMRC - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 4.

This energy services company is expected to post quarterly loss of $0.27 per share in its upcoming report, which represents a year-over-year change of -145.5%. The consensus EPS estimate for the quarter has been revised 1.6% higher over the last 30 days to the current level.

Ameresco's revenues are expected to be $364.06 million, up 3.2% from the year-ago quarter.

FRAMINGHAM, Mass.--(BUSINESS WIRE)--Ameresco Reports First Quarter 2026 Financial Results.

Although the revenue and EPS for Ameresco (AMRC) give a sense of how its business performed in the quarter ended March 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

FRAMINGHAM, Mass.--(BUSINESS WIRE)--Ameresco closes Neogenyx Fuels joint venture with HASI to accelerate advanced biofuels growth with $400 million commitment.

Ameresco, Inc., (NYSE: AMRC), a leading energy infrastructure solutions provider, today announced that its Kūpono Project in Hawai’i has been named a winner in the 2026 Environment+Energy Leader Awards. The annual program recognizes companies delivering measurable progress in energy management, environmental performance, and sustainability.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260518292328/en/

Ameresco's Kūpono Project Named Winner in 2026 Environment+Energy Leader Awards

Award-Winning Solar and Storage Innovation in Hawai’i

Honored in the Environmental Impact category for reducing emissions, strengthening grid resilience, and expanding access to reliable renewable energy for underserved communities on Oʻahu, the Kūpono Project was one of this year's standout entries across categories spanning product innovation, project implementation, startup advancement, and organizational leadership.

The project pairs a 42 MW solar array with a 42 MW/168 MWh lithium-ion battery energy storage system, delivering reliable power for approximately 10,000 homes. Structured as a 20-year public-private partnership with the U.S. Navy and Hawaiian Electric (HECO), Kūpono reduces more than 50,000 tons of CO₂ annually, equivalent to taking 12,000 cars off the road each year, and supports Hawaii's statutory goal of 100% renewable energy generation and carbon neutrality by 2045.

Beyond environmental performance, the project also demonstrates how large-scale infrastructure investment can deliver meaningful community benefits. Built with local labor and materials, the project supports Hawai’i’s growing renewable energy workforce and funds philanthropic investments in STEM education, youth sports, and community organizations across the island. Thoughtful land stewardship, including the safe relocation of 500,000 bees and ongoing vegetation management by a herd of 200 sheep, ensured minimal disruption to the surrounding environment throughout construction and ongoing operations.

A Testament to Excellence

Recognition from Environment+Energy Leader highlights the Kūpono Project as a standout example of innovation and performance in today's evolving energy and sustainability landscape. Judges highlighted the project's strong public-private partnership structure, innovative land stewardship, and its “excellent alignment with state and federal decarbonization targets.”

"As organizations navigate an increasingly dynamic and uncertain operating environment, the ability to improve efficiency, reduce emissions, and deliver measurable results has never been more critical," said Sarah Roberts, Co-President and Publisher of Environment+Energy Leader. "This year's winners demonstrate the innovation and leadership required to move forward with clarity and impact."

For Ameresco, the recognition reflects the power of collaboration and a long-standing commitment to building resilient energy infrastructure.

"The Kūpono Project reflects exactly what is possible when public, private, and community stakeholders come together around a shared purpose," said Nicole Bulgarino, Co-President of Ameresco. "This recognition reflects the strong collaboration with the U.S. Navy and Hawaiian Electric, the local teams who built this project, and the communities in Hawai’i who will benefit from reliable renewable energy for decades to come.”

About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. NYSE:AMRC is a leading energy infrastructure solutions provider dedicated to helping customers reduce costs, enhance resilience, and decarbonize to net zero in the global energy transition. Our comprehensive portfolio includes implementing smart energy efficiency solutions, upgrading aging infrastructure, and developing, constructing, and operating distributed energy resources. As a trusted full-service partner, Ameresco shows the way by reducing energy use and delivering energy infrastructure solutions to Federal, state and local governments, utilities, data centers, educational and healthcare institutions, housing authorities, and commercial and industrial customers. Headquartered in Framingham, MA, Ameresco has more than 1,500 employees providing local expertise in North America and Europe. For more information, visit www.ameresco.com.

About the Environment + Energy Leader Awards
Now in its 14th year, the Environment+Energy Leader Awards program recognizes excellence across products, projects, startups and organizational initiatives that deliver meaningful advancements in environmental programs, sustainability, and energy management. Entries are evaluated by an independent panel of industry experts, with a focus on innovation, scalability, and measurable impact. Winners are recognized as leaders in advancing best practices and setting new standards across the global energy and environmental landscape.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260518292328/en/

CARLSBAD, California, and BURLINGTON, Ontario--(BUSINESS WIRE)--Anaergia Inc. (“Anaergia” or the “Company”) (TSX: ANRG) (OTCQX: ANRGF), through its subsidiary Anaergia Technologies, has entered into a C$58 million contract with Neogenyx Fuels to deploy its proprietary anaerobic digestion technology at a large-scale agricultural facility in the United States. Neogenyx Fuels is a newly formed joint venture between Ameresco, Inc. (NYSE: AMRC) and HA Sustainable Infrastructure Capital, Inc. (“HASI”.

Editor's Note: The U.S. stock market and the InvestorPlace offices, including Customer Service, will be closed tomorrow, May 25, in observance of Memorial Day. Our regular hours will resume on Tuesday, May 26, at 9 a.m.

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Citywide infrastructure project targeted aging manholes with structural repairs, improving wastewater system reliability, long-term performance, and safety for the community

FRAMINGHAM, Mass. & MESQUITE, Texas--(BUSINESS WIRE)--Ameresco, Inc., (NYSE: AMRC), a leading energy infrastructure solutions provider, today announced the successful completion of the first phase of a multi-year, citywide manhole rehabilitation initiative with the City of Mesquite, Texas, which maintains approximately 6,400 manholes across its wastewater system.

This proactive approach to rehabilitate aging assets not only prevents disruptions, it manages costs. Programs like the ones offered by Ameresco help the City provide consistent and affordable services to our citizens.

Share As part of the project, Ameresco rehabilitated more than 190 manholes throughout the city’s wastewater infrastructure that have shown signs of deterioration. The project is intended to help minimize the risk of inflow and infiltration of stormwater and address potential structural failures, ultimately reducing system inefficiencies and wastewater treatment costs associated with aging manholes.

“We’re proud of our continued partnership with the City of Mesquite and the successful completion of this important infrastructure investment,” said Louis Maltezos, Co-President of Ameresco. “Modernizing wastewater infrastructure strengthens system reliability and positions communities to meet future needs with confidence. This project supports the modernization of critical infrastructure to strengthen system reliability and long‑term performance.”

Ameresco provided a full wastewater rehabilitation solution that included the supply and installation of a multi-layered polymeric lining system to restore structural integrity of the manholes and extend service life. Prior to coating installation, each manhole structure underwent a comprehensive cleaning process, with any identified holes or cracks grouted and plugged to create ideal surface conditions for maximum coating adhesion and long-term performance.

“The City of Mesquite is committed to providing quality water and wastewater services to our customers with limited disruptions,” said Cliff Keheley, City Manager. “This proactive approach to rehabilitate aging assets not only prevents disruptions, it manages costs. Programs like the ones offered by Ameresco help the City provide consistent and affordable services to our citizens.”

This project marks the latest initiative in a successful multi-year partnership with the City of Mesquite focused on modernizing critical water infrastructure. Previous collaboration efforts included the implementation of a comprehensive smart metering infrastructure project serving the city’s residential and commercial water utility customers.

To learn more about Ameresco’s advanced metering infrastructure solutions, visit: https://www.ameresco.com/advanced-metering-infrastucture/

About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading energy infrastructure solutions provider dedicated to helping customers reduce costs, enhance resilience, and decarbonize to net zero in the global energy transition. Our comprehensive portfolio includes implementing smart energy efficiency solutions, upgrading aging infrastructure, and developing, constructing, and operating distributed energy resources. As a trusted full-service partner, Ameresco shows the way by reducing energy use and delivering energy infrastructure solutions to Federal, state and local governments, utilities, data centers, educational and healthcare institutions, housing authorities, and commercial and industrial customers. Headquartered in Framingham, MA, Ameresco has more than 1,500 employees providing local expertise in North America and Europe. For more information, visit www.ameresco.com.

The announcement of completion of a customer’s project contract is not necessarily indicative of the timing or amount of revenue from such contract, of Ameresco’s overall revenue for any particular period or of trends in Ameresco’s overall total project backlog. This project was included in Ameresco’s previously reported contracted backlog as of March 31, 2026.

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Listen to the audio version of this article (generated by AI).

Tom Yeung here with your Sunday Digest.  

Last week here, we talked about how master trader Jonathan Rose and Wall Street veteran Marc Chaikin had combined their smart money indicators into a “Convergence Trigger” signal. 

They revealed their system’s top five picks in their Convergence Summit on Thursday night. I hope you tuned in. The pick I featured here in the Sunday Digest from that list – Ameresco Inc. (AMRC) – has already risen 10% since then, bringing its one-month return to 18%. In fact, the five companies Jonathan and Marc selected have now risen 38% since the start of May. 

Now, it’s tempting to think it’s too late to jump in. Jonathan and Marc’s five stocks are all a part of the AI Revolution, and many investors are rightly wondering how high things can keep going. After all, all “Big 3” dynamic RAM memory chip makers – Micron, Samsung, and SK Hynix – are now worth $1 trillion each.  

Could they possibly be worth $2 trillion? $5 trillion? Or more? 

Fortunately, I’m quite certain that at least one of their “Convergence Trigger” companies still has further upside. I’ll tell you why in this update. 

In the meantime, be sure to tune into a replay of Jonathan and Marc’s Convergence Summit if you haven’t seen it yet. In it, they explain how their system works, and how you can use it to make sure the next investment boom doesn’t pass you by. (And don’t wait long… our publisher will be removing the video later this week.) 

Now, here’s more on that “Convergence Trigger” stock that I believe still has some juice in it… 

The Sunny Outlier  First Solar Inc. (FSLR) is a rather fantastic company. This Tempe, Arizona-based solar company doesn’t have just one moat around its business… but rather it has four. Let’s go through each. 

1. Product. First Solar is the only company in the world that can produce cadmium telluride (CdTe) photovoltaic cells at scale. Unlike crystalline silicon (c-Si) panels, CdTe versions are straightforward to build and highly resistant to heat and long-term degradation. That makes them superior in hot and humid environments like the U.S. South, India, and the Middle East. 

This moat is protected by numerous patents, $2 billion in cumulative research and development spending, and a proprietary manufacturing process that even General Electric (GE) couldn’t figure out. GE exited the CdTe business in 2013. 

2. Supply Chain. First Solar is also protected by a quirk of its technology. CdTe panels require no polysilicon, no silver paste, and no wafers. Instead, their panels are essentially glass, steel, and a thin layer of proprietary cadmium telluride compound.  

That’s particularly important because China controls roughly 80% of the global supply of c-Si panel components. Rivals like Canadian Solar Inc. (CSIQ) are low-margin businesses because they rely on Chinese suppliers that can dictate terms and prices. First Solar faces none of those challenges. 

In addition, First Solar is vertically integrated. It controls its own tellurium sourcing, module assembly, and even end-of-life-recycling to handle and reuse the cadmium in its panels. Each step is relatively difficult — for instance, telluride is geologically as rare as gold, and cadmium can be as dangerous as mercury. Assembling the whole chain under one roof makes this moat especially wide. 

3. Government Subsidies. The U.S. solar industry is currently protected by two pieces of legislation that the 2025 One Big Beautiful Bill confirmed: 

Section 45X. This series of production-based tax credits overwhelmingly benefits First Solar because credits for cell production and assembly are stacked. In fact, the company generated so many of these credits that it sold $1.3 billion worth of them in 2025, making up a quarter of total revenues.   FEOC Restrictions. This consumer-based tax credit requires buyers avoid Foreign Entity of Concern (FEOC) panel makers to claim their own credits. First Solar clears this hurdle easily given its domestic CdTe supply chain. These rules last through 2027 for project-level credits and until 2032 for manufacturing credits.  I expect both to get extended in some fashion. In April 2026, a group of Republican congressmen from Pennsylvania, New York, and Ohio proposed legislation to preserve commercial solar tax credits to protect firms like First Solar, which has a large presence in the region. Meanwhile, FEOC rules were strengthened under the current administration, and any trade war with China will likely trigger an expansion. Even though the White House has publicly criticized the solar industry, its actions have moved in the other direction. 

4. Financial Strength. I ordinarily don’t award a “moat” for financial strength, since anyone with a large enough pocketbook can step in. But I’ll make an exception for the solar industry because everyone else is in such terrible shape. Canadian Solar, JinkoSolar Holding Co. (JKS), and Sunrun Inc. (RUN) all have debt-to-equity ratios of over 250% and struggle to afford payments on interest. China’s LONGi Green Energy Technology Co. Ltd. has lost money since 2024 and will likely keep doing so until at least 2027. The c-Si panel industry is a cutthroat business. 

Meanwhile, First Solar has maintained a fortress balance sheet, thanks to its 30% profit margins from its differentiated product. The company has $2 billion of net cash on its books, almost no debt, and is expected to generate $1.8 billion of free cash flows next fiscal year, up from $1.2 billion in 2025. 

This financial strength has allowed First Solar to continue investing in research and development ($270 million this year) and spending on production capacity ($884 million). It outspends its rivals by almost 3-to-1 on R&D and could be the company to bring next-generation technologies like perovskites to market. (These calcium/titanium/oxygen crystals would be a major step forward if they can get scaled up.) 

Dawning Demand  These moats suggest that First Solar still has room to run. Shares have risen just 11% this year, even as electricity demand from AI data centers has continued to rise. 

Consider the math. The latest Blackwell chips from Nvidia Corp. (NVDA) draw roughly four times the power of what the prior generation needed and produce far more heat. Multiply that across thousands of racks, and you start to understand why data center operators are scrambling for power-generation capacity for chips and cooling. 

So, where will that juice come from?  

Increasingly, data center operators are turning to the sun. The solar production curve roughly matches demand for data center cooling, solar farms are quick to build, and solar power pairs well with electricity from natural gas and batteries. The U.S. Energy Information Administration estimates that 51% of planned grid capacity additions in 2026 will be solar. 

First Solar also easily passes Jonathan and Marc’s smart money screens. Shares have recently flipped to “Very Bullish” in Marc’s system on strong smart money buying. As you can see from the graph below, his system has consistently found the best times to buy. 

Marc Chaikin’s First Solar Inc. (FSLR) Rating

I also believe there’s more room for First Solar to grow. Only 17% of installed panels in the U.S. are currently CdTe, and barely 2% of global capacity uses the technology. That gives the company a long runway for growth. In the most recent quarter, First Solar announced record sales in India, and said that its backlog now sits at 47.9 gigawatts, or more than 2.5 years of revenues. 

Rays of Caution  Obviously, there are longer-term risks for a company like First Solar: 

Regulatory. First Solar faces an earnings cliff in 2027 when subsidies start to expire. Without any changes, one of its widest moats could dry up by 2032, taking as much as a third of revenues along with it.   Tariffs. Import taxes on Southeast Asian c-Si imports could be reduced, eroding the company’s pricing power   Future Products. First Solar’s success in perovskites is not guaranteed. Though these crystals have shown efficiency ratings as high as 34% (compared to 26% for c-Si), this has only been proven at tiny scales. Lossmaking LONGi Green Energy is also pursuing this technology  Nevertheless, markets have more than priced these fears in. First Solar’s shares trade at just 11X forward earnings, or roughly a third of comparable companies in the AI power buildout. If regulations move the way I expect, shares have at least a 50% upside from here. 

The Swiss Cheese Model Part 2  As I wrote here last week, markets have a lot of pressure building up beneath the surface. Many retail investors are now chasing returns of the hottest stocks, and analysts at Morningstar (and many others) are warning that companies like Micron Technology Inc. (MU) should “expect the wave to crash longer-term.” Morningstar analysts give Micron a fair value of $455, a 50% downside. 

Fortunately, Jonathan and Marc’s “Convergence Trigger” system helps investors avoid these pitfalls by forcing investment ideas through multiple screens. Even if smart money is giving bullish signals for Micron’s stock, options traders might have an entirely different outlook. 

And so, be sure to watch their Convergence Summit, where Jonathan and Marc will explain where they see the next pockets of opportunity, and how they’re navigating this “new normal” of markets that rise quickly and fall just as fast. 

Until next week, 

Thomas Yeung, CFA 

Market Analyst, InvestorPlace

Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.