Seeing a company lose almost half of its market-cap isn’t an encouraging sign. However, suppose the underlying business remains fundamentally sound, and this is just a case of tackling short-term challenges? In that case, such downward momentum can produce lucrative buying opportunities. So does First Solar fall into this category?

Why did the share price tumble?

As a quick reminder, First Solar’s a manufacturer of photovoltaic modules used in modern solar panels. And with countries seeking to expand their renewable energy infrastructure, business was seemingly booming. In fact, the stock had jumped around 400% between June 2020 and June 2024.

Sadly, this momentum started to decline. Rapidly expanding stiff competition within the solar industry has hampered demand for the firm’s products. And with Chinese manufacturers flooding the market with cheaper alternative components, both growth and earnings have suffered significantly.

As a result, investor sentiment has weakened. And when paired with rising uncertainty surrounding its ability to bounce back, the S&P 500 stock’s unsurprisingly taken a hit.

Potential for a comeback?

Despite the change in investor attitude, First Solar is far from a doomed business. In fact, the newly announced wave of US global trade tariffs could prove to be a handy catalyst for getting things back on track.

The group’s manufacturing facilities are located in the US. And with import duties being placed on imported solar components, the company could attract new local customers. At the same time, as interest rates steadily fall, solar energy projects become more commercially viable, as does installing solar panels on residential properties. In both cases, that boosts demand – a tailwind that First Solar is aiming to capitalise on.

With that in mind, it’s not so surprising to see that many institutional analysts have been updating their recommendations to Buy or Outperform in recent months. And even though there’s still a broad range of opinions, the average consensus is that the First Solar share price will reach around $200 by this time next year – a 25% gain from current levels.

Time to consider buying?

With sentiment surrounding this business improving, First Solar certainly appears to offer an interesting entry point to the US renewable energy sector. However, it’s far from a risk-free endeavour.

The business is still highly reliant on government support, which under the new administration might be hard to acquire moving forward. Meanwhile, the previously highlighted threat of cheaper Chinese alternatives could return if a new trade deal is successfully negotiated between the US and China.

All things considered, I’m not tempted by this S&P 500 stock. At least, not yet. The business is currently exposed to several external threats that management has little control over. But should these challenges dissipate, First Solar could become a more interesting prospect for my investment portfolio. That’s it remains on my watchlist, rather than my buy list, for now.

The post Down 40%! Should investors consider buying this unloved S&P 500 stock? appeared first on The Motley Fool UK.

Barclays

What it does: Barclays moves, lends, invests and protects money for customers and clients in over 40 countries.

By James Beard. Barclays (LSE:BARC) isn’t the best performing UK bank at the moment but I think it’s the one with the biggest potential. That’s why I bought some of its shares last month.

With a price-to-book ratio of 0.45, and a 12-month trailing price-to-earnings ratio of 7.1, the stock appears to offer good value. By 2026, analysts are expecting earnings per share to grow by nearly 60%, compared to their anticipated 2024 level. That’s because the bank’s seeking to improve its poor return on capital which lags behind that of its FTSE 100 peers.

However, there are risks. There’s no guarantee that the turnaround plan will work and banking stocks can be volatile. Bad debts could also be a problem if the global economic recovery stalls.

But I have confidence in the bank’s chief executive who plans to reduce costs by £2bn – and return at least £10bn to shareholders – over the next three years.

James Beard owns shares in Barclays.

First Solar

What it does: First Solar is one of America’s leading solar energy companies, known for thin-film solar panels.

By Oliver Rodzianko. I bought First Solar (NASDAQ:FSLR) recently after its valuation improved.

Management is expanding its manufacturing capacity through two new facilities set to be operational by late 2025. This is crucial to meeting the continued high demand for solar power. It also positions it as a key competitor against Chinese solar companies.

Analysts expect the company to achieve year-on-year revenue growth of 35.5% in 2024 and 26% in 2025. If its valuation also expands, then the returns over the next two years could be very large indeed.

However, China controls over 80% of the global solar supply chain. These businesses could put pricing pressure on First Solar, inhibiting its share price growth.

That being said, I’m bullish on Western green energy. First Solar is one of the strongest US solar investments I know.

Oliver Rodzianko owns shares in First Solar.

Five Below

What it does: Five Below runs a chain of retail outlets selling on-trend items to teenagers priced (mostly) at $5 or less.

By Stephen Wright. Shares in US retailer Five Below (NASDAQ:FIVE) have fallen 57% over the last 12 months. And they’ve reached a point where I think they look like terrific value. 

The company is heavily exposed to households with an income below $50,000 per year. That makes the risk of an economic downturn significant for the business. 

Despite this, Five Below has some impressive growth prospects. It’s looking to expand its store count at a rate of 12% per year for the next few years. 

Normally, this would involve taking on debt. But with new outlets breaking even by the end of the year, the company shouldn’t need to expose its balance sheet to danger in order to achieve its goals.

With the stock falling to a price-to-earnings (P/E) ratio of 15, I saw my chance and went for it. It’s started to rally already, though, so I’m on the lookout for another opportunity.

Stephen Wright owns shares in Five Below.

Taylor Wimpey

What it does: One of the UK’s largest home construction companies, building everything from apartments to six-bedroom homes. 

By Mark David Hartley. With the new Labour government coming into power, I’ve noticed renewed enthusiasm about building low-cost housing. Affordable housing accounted for 21% of builds performed by Taylor Wimpey (LSE: TW.) in 2022, so it’s in good stead to benefit from this surge. 

Falling interest rates could also help but for now, the UK’s economic outlook remains unclear. Housing is particularly sensitive to this, so that presents a risk to the stock. Delays and unexpected costs are another concern, as the Middle Eastern conflict threatens material deliveries via the Suez Canal.

With earnings forecast to grow, the stock’s price-to-earnings (P/E) ratio could drop from 24 to 18 in the next 12 months. But that’s still above the industry average, so growth may be slow this year. Fortunately,  it has an attractive 5.8% yield, so it makes a great addition to my dividend portfolio either way.

Mark David Hartley owns shares in Taylor Wimpey.

Xtrackers MSCI World Value UCITS ETF

What it does: Xtrackers MSCI World Value UCITS ETF invests in hundreds of global shares using a value strategy.

By Royston Wild. Buying value shares can have significant benefits for investors. I’ve chose to increase my own exposure to this category by recently opening a position in the Xtrackers MSCI World Value UCITS ETF (LSE:XDEV).

Value stocks can deliver market-beating capital appreciation over time as investors wake up to their cheapness. These shares can also be more stable during economic downturns as their low valuations already reflect potential profit risks.

This particular ETF tracks the performance of the MSCI World Enhanced Value Index, which comprises 400 large- and mid-cap companies across 23 developed markets. Major holdings include US tech stocks Cisco Systems, Qualcomm and IBM.

With a price-to-earnings (P/E) ratio of 9.6 times and 5.19% dividend yield, the fund offers excellent all-round value for money.

On the downside, this Xtrackers product may underperform during a sustained bull market. During these periods, investors tend to favour growth shares over value stocks. But over the long term I’m confident it will prove a valuable addition.

Royston Wild owns Xtrackers MSCI World Value UCITS ETF.

The post 5 shares that Fools have been buying! appeared first on The Motley Fool UK.

The world is continuing to move away from carbon-based fossil fuels in favour of cleaner alternative energy sources. Decarbonising the global economy will take an investment of over $100trn over the next three decades, experts have estimated.

So, with the rise of popularity in the renewable energy sector, is investing in renewable energy stocks a good idea? Let’s break it down.

What are renewable energy stocks?

Renewable energy stocks allow you to invest in companies at the centre of the green energy transition and will allow you to share in any successes these companies have along the way.

Renewable energy sources include solar power, wind, biofuels and even nuclear. These all aim to produce the energy we all require without emitting any (or much) carbon.

You may have seen examples of renewable energy in the form of wind turbines or perhaps solar panels on houses. These are becoming more and more common, demonstrating the rise in renewable energy, a largely emerging market.

Top renewable energy stocks in the UK

Here are some of the top renewable energy stocks by highest market cap:

SSE

Part of the FTSE 100, SSE was previously known as Scottish and Southern Energy. It is a multinational energy company headquartered in Perth, Scotland and operates across the United Kingdom and Ireland.

SSE develops, owns and operates low-carbon infrastructure designed to support the zero-carbon transition. This includes onshore and offshore wind, hydropower, electricity transmission and distribution grids, and efficient gas-fired generation. And the company is a large generator of renewable electricity and one of the largest electricity network companies in the UK.

In November 2025, management unveiled a transformational £33bn five-year investment plan – its most ambitious spending programme to date. The goal is to upgrade and expand its regulated UK electricity networks using £27bn, with the rest allocated towards renewables and flexible energy generation assets.

As of February 2026, this investment programme is well underway with a 64% surge in network investments reported following its third quarter trading update.

Greencoat UK Wind

Greencoat UK Wind is a listed renewable infrastructure fund invested in operating UK wind farms, which are generating income. The fund is a constituent of the FTSE 250. It offers an attractive, sustainable dividend, which increases in line with RPI, while preserving capital in real terms.

In the face of rising interest rates and falling energy prices, Greencoat has experienced higher levels of financial pressure in recent years. However, management has not sat idle. And throughout 2025, the company continues to optimise its portfolio, acquiring new assets while disposing of older, underperforming ones.

Subsequently, with financials being carefully managed, the firm has resumed its shareholder payout hiking scheme in 2026.

Greencoat UK Wind is currently invested in 49 wind farms, both onshore and offshore. Its net generating capacity is 2 gigawatts.

Ceres Power Holdings

Ceres Power Holdings’ main purpose is to help sustain a clean, green planet by ensuring there is clean energy everywhere in the world.

The company came out of Imperial College in London, where Professor Brian Steele invented the SteelCell. Since then, Ceres has been working to perfect this technology for almost 20 years, positioning itself as a global leader in fuel cells and electrochemistry expertise.

A fuel cell is a power generation unit that produces, without any burning, an electric current from a chemical reaction. Fuel cell generation results in energy with low or zero CO2 produced, as well as clean air with no particulates, SOx or NOx emissions.

Ceres wants to bring cleaner and cheaper energy to businesses, homes and vehicles. To do this, the company works with global partners to embed its technology in mass-market energy products.

The firm did run into a bit of trouble in 2025 when its partnership with Bosch was terminated in February due to a strategic restructuring. And in October, Bosch announced its intention to start selling its 17.4% stake in the business. This unsurprisingly caused significant share price volatility. However, the firm has still made some notable milestones since, particularly in India, where its demonstrator unit achieved its first hydrogen production.

ITM Power

ITM Power’s aim is to help the world reach net-zero through the power of green hydrogen. It is the first hydrogen-related company to be listed on the London Stock Exchange.

For over 20 years, ITM Power has designed and manufactured electrolyser systems that generate green hydrogen based on proton exchange membrane (PEM) technology. Its systems use just renewable energy and water, with oxygen and water vapour as the only by-products.

The company has made significant strides in 2025. Apart from being selected as a technology provider for a 50-megawatt green hydrogen project in Europe, it has also secured new contracts to supply electrolysis modules for Uniper.

Combined, the firm entered its 2026 fiscal year aiming to deliver double-digit revenue growth while simultaneously turning cash positive. Yet while its latest results showed strong revenue growth, losses continue to be substantial, with management pushing back its goal of becoming free cash flow positive.

It also works with partners – including Linde, Shell, Snam, Hyundai, and Honda – to scale its impact, industrial reach, and market penetration.

RELATED: Investing In Water Stocks In The UK

AFC Energy Plc

Surrey-based AFC Energy is a developer of alkaline fuel cells, which use hydrogen for electricity production. It does this to generate clean energy, offering strong performance and low operating costs as part of global efforts to decarbonise the industry.

Its Hydrogen Power (H-Power) systems use a patented design aimed at ensuring efficiency, robust quality and economic operation. It is also free of pollutants and greenhouse gases. 

The company aims to help all customers achieve a net-zero carbon future through continuous development and improvement of its product base.

It has undergone a transformation in recent years, which includes the launch of a strategic partnership with ABB in December 2020. This was designed to create the next generation of high-power electric vehicle (EV) charging solutions for grid-constrained locations across the globe.

In 2026, the firm continues to focus on hydrogen power generation with its H-Power system. Under the new leadership of John Wilson as CEO, the firm is seeking to expand its portfolio of hydrogen solutions.

Last year, the firm saw the launch of its new Hy-5 containerised, portable cracking module with a production capacity of 500kg per day. Skip ahead to February 2026, and the Environment Agency gave the regulatory green light to sell the hydrogen produced by the group’s ammonia cracker pilot plant, bringing the group one step closer towards commercial production.

This opens the door to new market opportunities, such as hydrogen fuel production for refuelling stations and off-grid power generation for recharging electric vehicles.

RELATED: FTSE 100 vs FTSE 250: What’s the Difference?

Investing in US renewable energy stocks

You may also want to consider investing in US renewable energy stocks. A lot of platforms in the United Kingdom allow you to invest in US companies.

Here are some US renewable energy stocks to consider:

• Tesla (NASDAQ:TSLA)
• Enphase (NASDAQ:ENPH)
• NextEra Energy (NYSE:NEE)
• Clearway Energy (NYSE:CWEN)
• Brookfield Renewable (NYSE:BEP)
• First Solar (NASDAQ:FSLR)

Are renewable energy stocks right for you?

Clean energy stocks will not be right for everyone. Whether they are right for you will depend on the makeup of your portfolio, your risk appetite, and your financial goals.

If you care about sustainability, climate change, and want to have a positive impact on the planet while hopefully making money too, then investing in renewable energy stocks may be right for you.

These are large companies with growth potential. However, the value of any company can go down or up. Make sure you do your own independent research before making any investment, including renewable energy stocks.

And if you want to gain exposure to the energy sector but don’t want to invest in individual energy stocks, check out the best UK energy ETFs.

The post Investing In Energy: Top UK Renewable Energy Stocks of 2026 appeared first on The Motley Fool UK.

First Solar

First Solar (NASDAQ: FSLR), first founded in 1999, provides PV energy solutions for power plants worldwide and thin-film solar panels for all kinds of commercial application. First Solar believes that its thin-film technology differentiates it from its competitors as its panels are more cost-effective and more efficient.

Looking to First Solar’s balance sheet, the company has US$972.88 million in raw cash behind them with US$2.45 million currently as liabilities. It is safe to say that FSLR has a healthy balance sheet as debt has always been in decline. In terms of company valuation, First Solar’s earnings per share (EPS) is expected to be 3.46 in the next fiscal year.

What is exciting about First Solar is that the company shows so much promise with its encouraging financial indicators, but the price of this solar stock is undervalued when compared to their competitors. Although FSLR’s stock price crashed earlier this year, it seems that it is on the rise again with a 27% increase since March. I believe that First Solar will soon emerge from its lull in the stock market.  

Solar Edge Technologies

Solar Edge Technologies (NASDAQ: SEDG) is a world leader in smart energy solutions for PV professionals, business owners and homeowners. Solar Edge has been a favourite solar stock among investors for quite some time and is seen as a reliable choice for return on interest. 

This solar stock released its Q1 2021 report on the 31^st of March. It reported revenues of US$405.5 million, which is a 13% increase from the prior quarter, and a Generally Accepted Accounting Principles (GAAP) gross margin of 34.5%, up from 30.8% in the last quarter. These figures are another demonstration of the consistent financial strength of Solar Edge.

There is some deliberation over whether Solar Edge’s share price will continue to rise or not in the next 10 years. This is due to the surge in competition from companies such as First Solar, Sunrun (NASDAQ: RUN) and Enphase Energy. However, with its reputation to innovate, I believe that Solar Edge will continue to be at the top of the pack. 

Sunrun

Sunrun is one of the hottest solar stocks on the market today, with the price rising from last year by over 330%. It is a provider of residential solar panels and home batteries. Customers agree to pay for Sunrun’s solar instillations over a 20–25-year period.

When it comes to Sunrun’s financial performance, there are some risk indicators to consider from its balance sheet as we can see its debt-to-equity ratio is very high at 80% and it has negative net margins. This is not to say that the company is in danger of collapsing under debt but that I would need to proceed with some caution.

However,  all indicators show Sunrun as a must buy to me. Its revenues are increasing, and Sunrun’s gross margin is positive at 19% for the last two years. So, what to do with Sunrun? I’m considering buying and holding for the next year, as analysts believe this stock has a 57.28% potential return, then reassess the situation after more light has been shed on this solar stock. 

The post My top 3 picks for solar stocks appeared first on The Motley Fool UK.