Solar stocks were one of the few bright spots in the stock market last week, as names such as First Solar (FSLR) and SunPower (SPWR) hit new highs. But on Monday they pulled back. What happened?
The issue is oil, says Pete Najarian on CNBC's "Closing Bell". When oil pulls back, solar pulls back. And there’s a new energy bill before lawmakers in which some of the rebates for using solar were dropped. That’s an issue as well.
Many of the names in this space have had extraordinary runs so avoid most of these stock right now, Najarian adds.
If you’re looking for a trade Najarian recommends Energy Conversion Devices (ENER) because he feels it's underperformed many of the other names in the space.