Why Are These Stocks Trending Today?

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Partly because the price of crude oil is rebounding and partly because Congress is reportedly considering extending renewable energy tax credits in exchange for lifting the oil export ban, shares of SunPower Corporation (NASDAQ:SPWR)First Solar, Inc. (NASDAQ:FSLR), and SolarCity Corp (NASDAQ:SCTY) are each higher in pre-market trading. All three companies could benefit from the extension of the ITC tax credit that is currently driving demand in the United States. All three stocks will also see short covering if crude prices spike. If Congress extends the ITC expiration past December 2016, look for the stocks to do well. Among the funds we track, 29 investors owned 21% of SolarCity Corp (NASDAQ:SCTY) at the end of the third quarter, while 20 funds were long 3.5% of SunPower Corporation (NASDAQ:SPWR)’s float. First Solar is even more popular with a total of 34 investors reporting long positions as of the end of September, amassing 8.10% of the company’s outstanding stock.

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Disclosure: none

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