jueves, enero 02, 2014

Top Stocks Of 2013 Run Gamut: Solar, Drugs, Tech, TV



Fifteen companies with $1 billion-plus market caps bagged stock gains above 300% in 2013, all but two of them tech and drug stocks.
Four solar stocks made this list, led by Canadian Solar (CSIQ), up 777%. The others: SunPower (SPWR), up 431%; SolarCity (SCTY), up 376%; and SunEdison (SUNE) up 302%.
Solar's progress was partly an industry recovery story — and that could continue into 2014.
SunPower, with solar developments like this one in California, was a 2013 leader, with its stock rising 431%.
SunPower, with solar developments like this one in California, was a 2013 leader, with its stock rising 431%. View Enlarged Image
In 2013 "we were coming off two decimating years in the market plagued by overcapacity in the module side of the business," said Robert W. Baird & Co. analyst Ben Kallo. There were "companies going bankrupt over the world, so that helped the supply-demand equation," he told IBD.
Top Industry Group
IBD's Energy-Solar industry group ranks No. 1 of the 197 groups tracked. The 20-company group jumped 168% in 2013, while the S&P 500 gained 29.6% and the Nasdaq 38.3%. Canadian Solar, SunPower and SolarCity hold IBD Composite Ratings of at least 86.
"We saw solar becoming competitive with fossil fuels in over half the world, so new markets opened up," Kallo said. "So we saw the beginnings of solar being a viable resource for electricity production, and that will continue into 2014."
He sees 2014 as likely stronger in demand and supply, and calls SunPower and December 2012 IPO SolarCity his two favorites in the solar sector, in part because they have "downstream exposure." Both do installations, so can benefit as prices on solar panels fall. SunEdison also does installations.
U.S. solar installations are expected to rise at a compound annual rate near 30% the next three years, from about 3.3 gigawatts in 2013 to more than 9 GW in 2016, Cowen & Co. analyst Rob Stone said in a research note last week.
"Utility scale systems, driven by state RPS (renewable portfolio standard) requirements, should account for about 60% of the market in 2013," he said in the note. "Residential and commercial systems offer attractive returns, thanks to steep declines in module prices over the past several years."
Biotechs Go Big
Drugmakers Lannett Co. (LCI), Acadia Pharmaceuticals (ACAD), Keryx Biopharmaceuticals (KERX) and Puma Biotechnology (PBYI) also made the list of top big-stock gainers for 2013, with growth ranging from 394% to 567%.
Lannett makes generic versions of branded pharmaceuticals, and has guided 2014 revenue above analysts' estimates. It sports a highest-possible IBD CR of 99. None of the others has a CR above 60.

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