Why Alternative Energy Stocks Like First Solar and Uranium Soared Wednesday

A solid day for the overall market was a great day for stocks in the alternative energy sector. The actions of the solar panel manufacturer First Solar (FSLR 15.19%) increased by 15.2%, closely followed by Sunrun (RUNS 11.34%) and Solar Edge (SEDG 8.46%)which ended the day’s session 8.5% higher. Names related to nuclear power such as Cameo (CCJ 6.05%) and Uranium energy (UEC 12.36%) also jumped, with the latter climbing 11.9% during today’s action.

The basic call for optimism is, however, the same in all cases. That is, US Vice President and presidential hopeful Kamala Harris believes that the nation’s future energy needs will be met by a combination of sources, including those provided by these companies.

Rekindled support from presidential candidate Kamala Harris

Without going into detail, Vice President Harris painted a clear picture of her vision for America’s future energy creation and consumption. In Tuesday night’s presidential debate with former President Donald Trump, Harris commented “My position is that we need to invest in diverse sources of energy so that we reduce our dependence on foreign oil.” She went on to claim that the Biden administration she serves in has already invested $1 trillion in clean energy initiatives.

Again, the positions expressed and the statement did not include any specifics. Neither does Harris’ official campaign and policy website, except that her work on that front so far has helped build a “prosperous clean energy economy” while laying the groundwork for “the fight for the freedom to breathe clean, to drink clean water, and to live free from the pollution that is fueling the climate crisis”.

With Harris’ chances of being elected boosted by her strong performance in Tuesday’s debate, beaten-down alternative energy names such as Uranium Energy and First Solar were ready for even the slightest hint that the political winds might soon blows in their favor.

Still too much uncertainty

A good day for a stock doesn’t necessarily mark the start of a new trend, of course, just as a good debate performance doesn’t guarantee that Harris will be the next president of the United States. And even if it is, that won’t necessarily mean clean and alternative energy companies will find their path to growth easy.

Given the aforementioned uncertainties, these suddenly hot stocks still aren’t necessarily bullish big bets for most buy-and-hold investors. It will take some firm policy changes, 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 tides reverse course just as quickly.