How Has JA Solar Stock Performed in 2016?



JA Solar’s stock price movement

The extension of ITCs (investment tax credits) beyond 2016 in the United States gave a boost to solar (TAN) stocks at the end of 2015. But the momentum didn’t continue in 2016.

Uncertainty surrounding the Fed’s interest rate hike and the recovery of oil prices had a negative impact on solar stocks in 1Q16. Major solar players such as SunPower hit new lows in February 2016. Persistently low natural gas prices also had an indirect impact on these stocks in the first half of the year.

After 1Q16, the recovery in commodity prices and resolved regulatory issues surrounding net metering systems helped solar stocks recover from their February lows. However, the PV (photovoltaic) module supply glut in global markets is still a major concern for these companies in 2016.

JA Solar (JASO) stock fell nearly 39% from January 4, 2016, through September 22, 2016.

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Peer performance

Upstream solar stocks, including First Solar (FSLR), SunPower (SPWR), Trina Solar (TSL), Yingli Solar (YGE), and Canadian Solar (CSIQ), witnessed the same trend as JA Solar in 2016.

Below are some stock comparisons in the solar industry for January 4, 2016, through September 29, 2016:

However, we should note that SunEdison (SUNEQ) stock fell due to company-specific reasons. It filed for Chapter 11 bankruptcy protection on April 21, 2016.

The Guggenheim Solar ETF (TAN), which tracks the broad-based solar market, has fallen nearly 34% year-to-date as of September 29, 2016. The SPDR S&P 500 ETF (SPY) has risen nearly 7%.

In the next part, we’ll take a look at JA Solar’s fiscal 2016 guidance and outlook.


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