CNBC Pro

Solar stocks are sliding amid policy headwinds. Wall Street analysts say buy these names

Tim McKibben, left, a senior installer for the solar company, Sunrun, and installer Aaron Newsom install solar panels on the roof of a home in Granada Hills.
Mel Melcon | Los Angeles Times | Getty Images

Solar stocks tumbled on Monday after the fate of the Build Back Better plan, which includes billions of dollars for clean energy initiatives, was thrown into question as West Virginia Democratic Sen. Joe Manchin said he cannot vote in favor of the legislation.

The Invesco Solar ETF slid as much as 6% amid heavy declines across the sector. Sunrun fell about 11.5% at its low point, while SunPower and Sunnova declined more than 7%. Enphase and SolarEdge both traded lower, too. However, by 11:20 a.m. on Wall Street the group had recovered some of those losses, with Sunrun last down more than 5%.

But some Wall Street analysts believe the Build Back Better uncertainty was already reflected in solar shares, and pointed to several stocks that look especially attractive following the move lower.

More In Future of Energy

JPMorgan downgrades First Solar, cites stock's recent outperformance following climate bill passage
CNBC ProJPMorgan downgrades First Solar, cites stock's recent outperformance following climate bill passage
Goldman Sachs says EV batteries are becoming 'critical' and names 2 stock picks
CNBC ProGoldman Sachs says EV batteries are becoming 'critical' and names 2 stock picks
Here's what the midterm election results could mean for energy ETFs
CNBC ProHere's what the midterm election results could mean for energy ETFs