Solar(CSIQ) ZACKS·2024-12-30 21:00Industry Overview - The global solar industry is projected to experience significant growth in 2024, despite a slowdown in demand in Europe, which held a 19% share of the global market in 2023 [1] - The industry reached a historic milestone of 2 terawatts (TW) of installed solar PV capacity in November 2024 [3] - However, the outlook for 2025 is less optimistic, with global installations expected to decline by 0.4% to 492 gigawatts [6] Challenges - The European solar market faces challenges such as oversupply of panels, competition from countries with cheaper solar products, and lower utility rates [1] - In 2025, installations in major countries like Brazil and India may suffer due to increased tariffs, grid connectivity delays, land acquisition issues, and domestic content requirement standards [5][13] - Limited grid capacity and the need to curtail solar generation are anticipated to negatively impact installations in China, which accounts for over 50% of global solar installations [13] Company Insights - First Solar (FSLR): The largest thin-film PV solar module manufacturer globally, with an expected annual manufacturing capacity exceeding 25 GW by the end of 2026. The consensus estimate for FSLR's 2025 sales is 1.70 billion, indicating a 27.7% increase from the previous year [8][9] - Nextracker (NXT): The number-one global market-share solar tracker company, with a market share of 30%. The consensus estimate for NXT's 2025 sales is 3.44 per share, up 5.7% [10][18] - Canadian Solar (CSIQ): A company that has delivered over 118 GW of solar modules globally, with a consensus estimate for 2025 sales at $7.59 billion, reflecting an 18.4% increase from the previous year [19][20] Investment Focus - Investors are encouraged to consider stocks from the Zacks solar industry, including First Solar, Enphase Energy, Nextracker, and Canadian Solar, due to their favorable growth prospects and strong market presence [11][15]