SolarCity is a relatively newly traded solar company that sells or leases solar panels to residential and commercial customers. The prospect of leasing solar panels might seem idiotic at first until you realize just how expensive the purchase and installation of those panels can be. Once SolarCity Corp (NASDAQ:SCTY) makes its initial purchasing investment in the panels, it frees the company to set up recurring monthly revenue leasing streams. The best part is the costs from the consumer and business end could actually wind up dropping over the long run as standard fuel costs rise.
SolarCity Corp (NASDAQ:SCTY) also hasn’t needed to advertise out the hilt. In fact, it’s utilizing a similar marketing ploy to that used by Tupperware, which is to allow residential customers to set up in-home parties and gatherings that show off the uses of the product. Apparently this strategy must be working, as revenue grew by 22% in the fourth quarter as the total number of customers (presumedly residential) rose by 192%. While losses will be the name of the game for probably the next few quarters, I would be very intrigued to dig even deeper into SolarCity Corp (NASDAQ:SCTY) on any major pullback.
The article 3 Stocks to Get on Your Watchlist originally appeared on Fool.com and is written by Sean Williams.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of, and recommends Exelixis, Inc. (NASDAQ:EXEL). It also owns shares of Tupperware.
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