Bright Long-term Outlook for Sunrun Stock.

Consider expanding your assets in sustainable energy. In this case, consider Sunrun stock.

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There are worries over the trajectory of the residential solar industry in the United States, which Sunrun specializes in supplying, in the foreseeable future. Hence, RUN stock receives a grade of B rather than A. Despite this, financial traders may invest in Sunrun as long as they know the hazards.

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Sunrun's business strategy, as described by CEO Mary Powell, is "clean energy as a subscription." This enables clients to utilize and stack the most cutting-edge, creative energy technology to power their homes and vehicles while affording them the chance to save money.

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With this business strategy, Sunrun has become the market leader in residential solar energy in the United States, with a roughly 18% market share. Despite Sunrun's rapidly expanding user base, RUN stock has been stagnant for some time.

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So what's with RUN Stock?

Since last year's beginning, the price of Sunrun's shares has fluctuated but hardly advanced. In addition, the corporation does not pay dividends. Thus faithful Sunrun shareholders have no consolation gift.

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Even if RUN stock has been stagnant, this does not indicate that the firm is not prospering. Powell said that during the third quarter of 2022, Sunrun "increased new installations by 17% year-over-year, deploying 256 megawatts, above the midpoint of our expectations" In addition, Sunrun accomplished these outcomes despite hurricane devastation in Florida and Puerto Rico.

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The increase in Sunrun's user base is the most promising factor. The corporation keeps on boosting its user numbers, quarter after quarter. And during the third quarter of 2022, Sunrun increased its entire client base by 21% year-over-year to 759,937.

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About Demand Decline in the U.S. Home Solar Industry

However, we want to be fair and balanced. Therefore we cannot disregard the recent remarks made by analysts at Barclays. They are concerned that a downturn in residential solar demand in the United States might negatively impact Sunrun's operations.

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Trade Algo reports that Barclays analysts anticipate "overall U.S. residential growth" in the mid-teens this year. The impact of recent Net Energy Metering solar tariff adjustments will be noticed at the end of 2023 and the first part of 2024. Therefore the growth of this industry "may be more subdued" in 2024.

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This is a valid concern, and potential RUN stock buyers should heed the experts' warning. Yet, Sunrun might prosper in the long run. Sunrun anticipates "15% annual industry growth over the next decade" for the home solar sector.

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Consider also the effect of the Inflation Reduction Act, which gives tens of billions of dollars to clean-energy efforts. At his most recent State of the Union speech, President Biden reminded the public of his commitment to clean-energy subsidies.

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Jessica Rabe, an analyst, and strategist at DataTrek Research, likely stays awake about imminent threats to new-energy companies like Sunrun. Rabe remarked, "Overall, we believe that clean energy is excelling because it is a growing industry with sustained legislative and geopolitical tailwinds."

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What You Can Do Now

On the other hand, there is the tailwind of the Inflation Reduction Act and Sunrun's substantial user base expansion. On the other hand, one must also consider a potential hindrance. Analysts from Barclays specifically cautioned investors about a possible downturn in Sunrun's market.

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There is plenty to ponder here. Nonetheless, Sunrun looks to have the upper hand. Sunrun continues to acquire new customers and install an increasing number of solar systems despite industry-wide issues. Consider a long-term stake in RUN stock after performing your research.

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