The Democratic Party’s candidate said all the words a handful of investors needed to hear.
A solid day for the overall market was a great day for stocks found in the alternative energy sector. Shares of solar panel maker First Solar (FSLR 15.19%) rallied 15.2%, followed closely by Sunrun (RUN 11.34%) and Solar Edge (SEDG 8.46%), which ended the day’s session 8.5% higher. Nuclear energy-related names like Cameco (CCJ 6.05%) and Uranium Energy (UEC 12.36%) jumped as well, with the latter rising 11.9% during today’s action.
The underlying prompt for the bullishness is the same in all cases, though. That is, U.S. Vice President and presidential hopeful Kamala Harris believes the nation’s future energy needs will be met by a combination of sources including the ones these companies offer.
Rekindled support from presidential hopeful Kamala Harris
Without getting into any specifics, Vice President Harris painted a clear picture with her vision of America’s future creation and consumption of energy. In Tuesday evening’s presidential debate with former President Donald Trump, Harris commented “My position is that we have got to invest in diverse sources of energy so we reduce our reliance on foreign oil.” She went on to tout that the Biden administration she works under has already invested $1 trillion in clean energy initiatives.
Again, the voiced positions and statement didn’t include any specifics. Neither does Harris’ official campaign and policy website, other than noting that her work on this front thus far has helped build a “thriving clean energy economy” while laying the groundwork to “fight for the freedom to breathe clean air, drink clean water, and live free from the pollution that fuels the climate crisis.”
Given Harris’ raised odds of being elected following her strong performance in Tuesday’s debate,, beaten-down alternative energy names like Uranium Energy and First Solar were ripe for even the slightest hints that political winds could soon be blowing in their favor.
Still too much uncertainty
One good day for a stock doesn’t necessarily mark the beginning of a new trend, of course, just as one good debate performance doesn’t guarantee Harris will be the next President of the United States. And even if she is, that won’t necessarily mean clean, alternative energy companies will find their growth path easy to navigate.
Given the aforementioned uncertainties, these suddenly hot stocks still aren’t necessarily great bullish bets for most buy-and-hold investors. It’s going to take some firm policy shifts backed by concrete, enacted legislation to accelerate the growth of nuclear, solar, and wind power, here and abroad. Don’t be surprised if Wednesday’s surges reverse course just as quickly.
James Brumley has no position in any of the stocks mentioned. The Motley Fool recommends Cameco, First Solar, and SolarEdge Technologies. The Motley Fool has a disclosure policy.
