SunPower: Don't Buy The Hype, It's Still Overvalued

Summary

• SunPower Corporation is increasing both top and bottom line in the last earnings report, but with a rich valuation I would stay away until the valuation becomes realistic.
• With revenues up 67% YoY, SunPower continues to ride the green energy wave and sees plenty of tailwinds ahead.
• In the face of higher interest rates and a difficult economic environment, SunPower continues building up their cash position.
• Despite being a growing company, I believe SunPower needs to go down in valuation before any real discussion could be had about a potential long-term investment.

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SunPower Corporation (SPWR) is a solar company operating in both the United States and Canada. They are a provider of both storage and home energy solutions. Even though the revenues are growing quickly, it still leaves the current share price too high

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.