The Donald Trump administration's recent decision to halt approvals of new solar and wind projects has sent shockwaves through clean energy markets, affecting stocks connected to the renewable sector.
3 Stocks Hitting The Bottom 10th Percentile Of Value Rankings
Among the most impacted are BKV Corp. (NYSE:BKV), Bloom Energy Corp. (NYSE:BE), and FTC Solar Inc. (NASDAQ:FTCI), all of which have just entered the "Hitting Bottom 10%" category in current stock rankings, particularly for their value scores.
Key Value Ranking Changes
The value ranking, defined as a percentile-based comparison of a stock's market price relative to fundamental measures such as assets, earnings, sales, and operating performance, shows these stocks are now considered particularly overvalued against their peers. Over the past week:
BKV Corp.
- This stock plummeted from a value score of 72.08 down to 9.79, a dramatic drop of over 62 points, signifying a rapid deterioration in perceived worth.
- The firm’s energy retail arm, BKV Energy, offers 100% renewable electricity plans powered by Texas solar and wind farms.
- The stock has tumbled 0.81% year-to-date but is up 29.50% over a year.
- It maintains a stronger price trend over the short, medium, and long terms. Additional performance details are available here.
See Also: 4 Consumer Cyclical Stocks That Are Flashing Strong Fundamental Signals
Bloom Energy
- BE saw its value rating slip slightly from 10.58 to 9.57—pinpointing a continuing lack of fundamental support at current market prices.
- While the company’s core product is solid oxide fuel cells that primarily use natural gas or biogas for electricity generation, they also produce Bloom Electrolyzers that create clean hydrogen from renewable sources like solar and wind energy.
- Higher by 126.53% in the YTD, the stock was up 380.40% over the year.
- With a solid growth ranking, this stock maintained a stronger price trend over the short, medium, and long terms. Additional performance details are available here.
FTC Solar
- FTCI declined from 11.17 to 10.17, marking a minor but meaningful slide below the 10th percentile threshold for value.
- The company provides advanced solar tracker systems, software like its SunBoss platform, and engineering services to optimize energy capture for utility-scale solar power plants.
- The stock advanced 9.65% YTD; however, it was 190.70% higher over the year.
- While this stock had a poor growth ranking, it had a strong price trend in the short, medium, and long terms. Additional performance details are available here.
Political Headwinds Amplify Valuation Risks
These stock-specific moves correlate starkly with President Trump's declaration to "not approve wind or farmer-destroying Solar," and legislative efforts to terminate key tax incentives for renewables by 2027.
As government support fades, market participants are reassessing the future earnings potential and asset quality underlying these three companies.
Steel and copper tariffs piled onto the equation, hiking up input costs and further weighing on margins for solar manufacturers and project developers.
The intersection of policy uncertainty and slumping value rankings for pivotal renewables stocks signals heightened risk of further downside. BKV Corp., Bloom Energy, and FTC Solar now stand out as three of the most potentially overvalued stocks in the clean energy space, grappling with shifting U.S. regulatory and fiscal landscapes.
Price Action
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, fell on Friday. The SPY was down 0.60% at $645.05, while the QQQ declined 1.16% to $570.40, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Joey Sussman on Shutterstock.com
