Is ReneSola Stock a Buy?

Falling costs, improved technology, and policy support -- the tailwinds are firmly behind solar stocks. The share of solar energy in global electricity generation is expected to rise from a mere 3% currently to roughly 20% by 2050. That would surely benefit solar stocks and explains investors' euphoria for the sector. As a result, solar stocks, including ReneSola (NYSE: SOL), have risen significantly lately. After already more than doubling in 2021, let's see if ReneSola stock is a buy right now.

To better understand ReneSola's prospects, it's imperative to briefly look at the company's history. ReneSola's beginnings go back to 2005, when it started its solar power business in China. Up till 2017, ReneSola was primarily involved in the manufacture of solar wafers and panels. However, the company was incurring losses and losing market share to competitors.