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Why Sunrun (RUN) Stock Is Trading Up Today

RUN Cover Image

What Happened?

Shares of residential solar energy company Sunrun (NASDAQ: RUN) jumped 5.3% in the afternoon session after reports that Congress may not cut federal tax incentives for residential solar installations. The potential for clean energy tax credits to remain intact, and possibly even be made more generous, has sent a wave of optimism through the solar sector. 

For Sunrun, the continuation of these incentives is crucial as they help make solar energy more affordable for homeowners, directly impacting the company's sales and growth prospects. The news provided a boost to several solar stocks, including Sunrun's rivals. This development follows a recent announcement from Sunrun that it dispatched over 340 megawatts of stored energy from its home battery fleet to support strained power grids during a recent heatwave, showcasing the growing importance of residential energy storage.

Is now the time to buy Sunrun? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Sunrun’s shares are extremely volatile and have had 78 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 2 days ago when the stock gained 9.4% after the major indices rebounded (Nasdaq +1.4%, S&P 500 +1.0%) on hopes the reported ceasefire between Israel and Iran would hold. This de-escalation in a volatile region helped to ease concerns about potential disruptions to global oil supplies, leading to a notable dip in crude oil prices. Additionally, dovish signals from Federal Reserve Chair Jerome Powell in his Congressional testimony, reaffirming a "wait-and-see" approach on interest rates, further calmed markets, improving investors' appetite for stocks and other risk assets.

Sunrun is down 24.6% since the beginning of the year, and at $7.71 per share, it is trading 64.2% below its 52-week high of $21.50 from August 2024. Investors who bought $1,000 worth of Sunrun’s shares 5 years ago would now be looking at an investment worth $414.53.

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