Wind generators spin throughout a winter storm close to Palm Springs, California, March 10, 2021.
Mike Blake | Reuters
The primary-quarter decline in clear know-how shares is a “regular, wholesome pullback” and presents a possibility for buyers, mentioned Raymond James in a analysis be aware.
“Should you missed the boat in 2020, an opportunity to get in,” wrote analyst Pavel Molchanov within the be aware to purchasers.
After gaining greater than 200% throughout 2020 the WilderHill Clear Power Index, which tracks the house, dipped almost 5% in the course of the first quarter. The S&P 500, however, gained 6%.
“To state the apparent, nothing goes up in a straight line. Extra to the purpose, loads of the names had been in overbought territory…and a few profit-taking was emphatically to be anticipated,” the Raymond James be aware mentioned.
The agency pointed to a number of causes behind the declines, together with a rotation away from growth-oriented areas of the market.
Wanting ahead, whereas Raymond James does see upside for the trade, the agency reiterated that clear tech is a inventory picker’s market. In different phrases, the sector should not be purchased as an entire. Relatively, buyers ought to consider firms on a person foundation.
Key elements to think about embrace product combine, margin construction and geographic footprint. The agency famous that for some names throughout the trade, the just lately unveiled $2 trillion infrastructure plan may very well be the “icing on the cake” for already sturdy progress tales.
With that in thoughts, listed here are a few of Raymond James’ picks: