The solar power solutions firm Sunworks (NASDAQ:SUNW) provided a positive update with regards to its operations yesterday and that triggered a strong rally in its stock. However, it should be noted that the stock has rallied strongly over the past two weeks. During the period, the Sunworks stock has soared by as much as 425%.
The Business Update
On October 7, the company announced that during the third quarter, it signed new projects that are worth as much as $10 million. The projects in question are in the commercial and agricultural domains.
However, that is not all. The company also revealed that in the last week of the third quarter, the company managed to ink project contracts worth as much as $3.6 million.
Best Performance Since Pandemic Hit
The company had been hit badly by the coronavirus pandemic and the resultant slowdown of the economy. However, it seems that is on the road to recovery since, in the third quarter, Sunworks managed to record its best quarterly booking performance since the start of the pandemic.
The company sent out a press release regarding the projects that it signed up for. Sunworks made bookings with a total of 19 clients, which include both existing and new clients.
Some of those projects include a modular home site located in California worth $3.2 million and an additional order from an existing agriculture sector client worth $1.8 million. Existing client Cibao Meat Products roped in Sunworks for a project worth $0.7 million. A new agriculture sector client signed up for a $1.4 million project as well.
Policy thrust favoring the sector
While the news on Wednesday was definitely a trigger for the Sunworks stock, it should be noted that it has been generating gains for two weeks. One of the reasons for that might be due to the possibility of governments pushing for policies that are favorable to alternative energy.
Hence, it has been a good time overall for solar stocks in general and Sunworks has also been able to ride the wave. In this regard, it needs to be pointed out that the Presidential election in the United States is an event that is going to be watched closely by investors.
The Democratic candidate Joe Biden is likely to back solar power if he becomes the President and if that happens then one might expect solar stocks to soar as well. Biden has pledged to pump in as much as $3 trillion in projects related to clean energy.
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