The first-quarter decline in clean expertise shares is a “regular, wholesome pullback” and presents a possibility for buyers, stated Raymond James in a analysis observe.

“If you missed the boat in 2020, an opportunity to get in,” wrote analyst Pavel Molchanov within the observe to purchasers.

After gaining greater than 200% throughout 2020 the WilderHill Clean Energy Index, which tracks the house, dipped almost 5% throughout the first quarter. The S&P 500, however, gained 6%.

“To state the apparent, nothing goes up in a straight line. More to the purpose, loads of the names had been in overbought territory…and a few profit-taking was emphatically to be anticipated,” the Raymond James observe stated.

The agency pointed to a number of causes behind the declines, together with a rotation away from growth-oriented areas of the market.

Looking ahead, whereas Raymond James does see upside for the trade, the agency reiterated that clean tech is a inventory picker’s market. In different phrases, the sector should not be purchased as a complete. Rather, buyers ought to consider firms on a person foundation.

Key components to contemplate embrace product combine, margin construction and geographic footprint. The agency famous that for some names throughout the trade, the just lately unveiled $2 trillion infrastructure plan may very well be the “icing on the cake” for already sturdy progress tales.

With that in thoughts, listed below are a few of Raymond James’ picks: