“This group has a lot more space to run”

CNBC’s Jim Cramer revealed his top three solar stocks on Monday.

“I think your portfolio needs some solar exposure, ideally with First Solar, Enphase or Generac,” said the host of “Mad Money”.

Cramer noted that stocks in the alternative energy space have regained ground after losing momentum after the swings that began late last year spurred on by the November election of the president. Joe Biden, who has pledged to focus on green energy.

“We had to wait for the great post-election upheaval before recommending solar actions,” Cramer said.

Shares of solar panel maker First Solar exceeded $ 107 per share in January, compared to about $ 60 in September. Shares of Enphase Energy, a home energy software company, have more than tripled between those months.

Both stocks are down more than 12% from their highs at Monday’s close.

“Since the trough a few months ago with the rest of the hyper-growth cohort, solar stocks have regained their momentum. They have rebounded sharply from their troughs, although they are still sharply lower from the peak “said Cramer. “I think this group has a lot more room to run.”

Generac, the maker of standby generators, is an exception as the stock started to reach new heights last month.

Between September and February, Generac stock more than doubled before falling about 20% in mid-May. The stock closed at $ 448.15 on Monday, up 55% from its May lows.

“Generac has been one of my favorite ways to play on an increasingly unreliable power grid, and while stock looks expensive here, management has a tremendous track record,” Cramer said.

“Even though I hate to hunt, you still have my blessing to put a small position because I love this business so much and it’s just before hurricane season. This market rewards good stocks even though they’ve moved a lot.”