With oil prices increasing higher everyday, consumers and businesses are going to have to turn to alternative energy sources sooner rather than later. Investors are obviously feeling the same way, as we see solar energy stocks burning up the exchanges on a consistent basis. This week's bull list contains five solar stocks that have all provided shareholders with over 20% gains this past week. One of the companies, ReneSola, we had first introduced a couple of months ago on Earth Day, in Earth Day Stocks To Know and had followed up on in Five Big Bulls To Know For May 16.

High returns from some of these stocks have not just been limited to this past week, as can be seen by this not being the first time ReneSola has made our bulls list. ReneSola has seen an increase of about 70% since its IPO at $13 back in January of this year. Canadian Solar, has also impressed shareholders with a return of 65% since the first trading day of the year. But what about the other three? Evergreen has actually disappointed, shaving off almost 30% since the beginning of January. Ascent and Solarfun have done the same, giving shareholders losses of 51% , and 35% respectively.

So, when looking for an opportunity to by some good value, lets take a look at these three that have not done so well this year. Maybe from there, we will find out that these recent moves are the beginning of something special. Neither Evergreen nor Ascent have been profitable yet this year, and without proven earnings, I am a bit wary of looking into these further - not when their competitors seem to be making money hand over fist with no trouble at all. So, lets take a look at Solarfun.

Solarfun in the Sun
Solarfun currently has has earnings per share, lower than any of the other stocks on the bulls list this week. The company is making profits, and its shareholders are paying less for them when compared with the competitors. With expected earnings taken into consideration, Solarfun has a forward price-to-earnings ratio of 2! This is unheard of in upcoming industries like solar energy. Assuming that Solafun can make good on its earnings guidance, this stock could see astronomical returns as investors push the price up to match the industry's average P/E of about 22.

Add Your Two Cents

What do you think will happen with Solarfun going forward? Will the recent gains, be the start of its bullish momentum, driving its returns up to match its cohorts? Will it make good on its earnings promises, to make valuations even more desiresable? Be sure to join me (aytonmm) in the FREE Stock Picking Community to share your thoughts and see what other investors are saying.

To read about other green investing ideas, check out our Green Investing Feature and Top 10 Green Industries.