A Small-Cap Winner Amid the Coming Solar Stock Surge  | | Luke Lango | Welcome back from the long weekend. Hope you enjoyed it. To help ease you back into things, I figured I'd tell you a story… Are you familiar with the Greek mythology of Icarus? Yes. He's the guy that flew too close to the sun. As the legend goes, a talented Athenian craftsman by the name of Daedalus was tasked with the creation of a great labyrinth to imprison the Minotaur – a fearsome half-man, half-bull monster. Through a series of unfortunate events, Daedalus did end up building such a labyrinth, but along the way, he, and his son – Icarus – became imprisoned in the labyrinth themselves. To escape, Daedalus fashioned two pairs of wings made from wax and feathers for him and his son. Before flying out of the labyrinth, Daedalus warned Icarus not to fly too close to the sun, else the heat would melt the wax on the wings and the feathers would fall off. But Icarus – overcome with giddiness at his newfound ability to fly – ignored his father's warning. He flew too to the sun. And, as his father warned would happen, the wax on his wings melted. The feathers fell off. And poor Icarus fell from the skies into the seas below and drowned. Not a happy story. 
But one with some big similarities to the solar industry today. You see… much like Icarus did thousands of years ago… solar stocks flew too close to the sun in early 2021. On abundant optimism that falling costs, improving technology, shifting consumer demand, and supportive legislature would spark a solar energy revolution, solar stocks absolutely soared in 2020. From late March 2020 into the end of the year, the Invesco Solar Portfolio ETF (TAN) rose almost 400%. The index climbed another near 20% to start 2021. But solar stocks have since come crashing down. From its early 2021 highs to May, the Invesco Solar Portfolio ETF shed as much as 45% … What happened? Solar stocks – like Icarus – flew too close to the sun. Their valuations became extended. Bloated. Rich. Too big. The hype was too much. The enthusiasm was too high. The expectations were too high. And, as a result, those stocks fell back to earth in early 2021. But there's one big difference between Icarus and solar stocks: Icarus permanently fell to his death, whereas solar stocks are temporarily falling before rebounding back to new highs. That's because the fundamentals underlying the solar industry remain very healthy. Indeed, they're actually only getting better. Need proof? In Q1 2021, U.S. solar market installations increased 46% year-over-year. Solar accounted for 58% of all new electricity-generation capacity added in the quarter – a record high and up from 44% in 2020, 40% in 2019, and 25% in 2018. 
Clearly, the solar industry is on fire right now. But, more importantly, the industry will remain on fire. Not because of subsidies. Not because of government spending. Not because of supply chains. Rather, and simply, because the technology supporting the creation of better and cheaper solar panels is progressing rapidly. For starters, solar panels are getting bigger, more powerful, and more capable, with improved energy conversion rates. You have new concepts – like "floating solar farms," which are allowing companies to build solar farms on top of bodies of water – and new panel designs – like bifacial modules, which can produce solar power from both sides of a panel – which are improving the overall efficiency and usability of solar energy. You also have the perovskites, which may be the biggest technological breakthrough of them all… Long story short, solar cells are built on semiconductors, since those semiconductors are what allow solar systems to turn raw sunlight into usable electricity. Traditionally, solar cells have used silicon as their primary semiconductor, since silicon is relatively abundant and stable, and its semiconducting properties naturally match up well with the sun's light spectrum. But making large silicon crystals for use in solar panels is very expensive and labor-intense – hence why solar panels are so expensive. Perovskites are the fix. Perovskites are easily synthesized materials that can be manipulated relatively easily. Scientists have recently figured out how to manipulate these easy-to-us perovskites to mimic the semiconducting properties of silicon. In it of itself, that's a huge deal, since it means perovskite solar cells are a low-cost alternative to silicon solar cells. But beyond that, researchers at the University of Oxford have figured out that, if you manipulate those perovskites in just the right way, you can significantly boost the efficiency of those solar cells, too. Today's silicon solar cells max out at around 22% efficiency. Throw in some perovskite, however, and Oxford is testing solar cells that are pushing 30% efficiency – and the research team expects that number to climb to 40% over time. In other words, perovskites could be the key to unlocking a new generation of more-efficient, cheaper solar panels, that could pave the way for mainstream adoption. Couple that with already naturally falling costs, huge government support, shifting consumer demand, and other technological improvements… and, well, the future becomes crystal clear here, folks. Solar energy is taking over the world. By 2040, the world will be powered by solar – whereas only a tiny fraction is powered by solar today. So, the solar stock correction that happened in from February to May is temporary. Indeed, it appears to already be over, and solar stocks appear to be the rebound. Over the past two months, solar stocks are up about 30%. I say jump aboard this rebound rally – it has legs! And, to play this coming solar stock surge, I recently highlighted a solar stock that is one of my favorite stock picks in the space. It's a company that has built a mission-critical technology at the epicenter of the solar energy industry. This technology is unique, patented, and powerful – and it's the key to making solar panels work well enough to be deployable across the globe. When all is said and done, thanks to this game-changing technology, this company could emerge alongside the biggest winners in the Solar Energy Revolution. To top it off, this stock trades for less than 1X forward sales. It won't be long before the market figures out its true worth and gives it a premium valuation. To find out more, click here. Sincerely, 
Luke Lango
Editor, Hypergrowth Investing On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article. By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It's how his Daily 10X Report has averaged up to a ridiculous 100% return across all recommendations since launching last May. Click here to see how he does it. | 
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