Are These The Best Renewable Energy Stocks To Buy Now?
There has been plenty of coverage on greener and cleaner energy lately. Naturally, renewable energy stocks would also be back on the radar of investors in the stock market. A recent report predicts that President Biden’s clean energy plan would cut emissions and save hundreds of thousands of lives from deadly air pollution. President Biden has also said that he wants all electricity to be renewable by 2035. So, it is not surprising that some of the hottest stocks over the past year are those that dwell in the space of renewable energy. A prime example would be the poster child of electric vehicles (EVs), Tesla Inc (NASDAQ: TSLA). The company has grown to be one the largest companies in the world while leading the charge in the electrification of vehicles.
We could see the movement for clean energy is gaining momentum everywhere around the globe. Yesterday, an international consortium revealed plans to build the world’s biggest renewable energy hub along the south coast of Western Australia. It is believed that the Western Green Energy Hub would stretch across 15,000 square kilometers and could produce up to 50 gigawatts of energy. All in all, this could just be the beginning of an industry with unimaginable potential. So, do you share the same sentiment on the future of renewable energy? If so, here is a list of some of the top renewable energy stocks in the stock market now that could be worth your attention.
Best Renewable Energy Stocks To Watch Right Now
- Chevron Corporation (NYSE: CVX)
- Enphase Energy Inc (NASDAQ: ENPH)
- First Solar, Inc (NASDAQ: FSLR)
- Proterra Inc (NASDAQ: PTRA)
Chevron Corporation
First, we have the multinational energy corporation, Chevron. In detail, it engages in integrated energy, chemicals, and petroleum operations worldwide. The company continues its commitment to evaluating opportunities across a range of alternative and renewable energy sources. These include wind, solar, and biofuels, as well as energy efficiency technologies. CVX stock has been up by over 22% year-to-date.
We could see this trend of transition to cleaner energy through its Series C investment in Blue Planet Systems Corporation earlier this year. This is a startup that manufactures and develops carbonate aggregates and carbon capture technology. Ultimately, that aims to reduce the carbon intensity of industrial operations. Moreover, the company recently said that the firm will spend $3 billion over the next seven years on technology to eliminate hazardous emissions from its activities.
It was no secret that it was a tough year for the energy sector last year. That said, Chevron reported a profit for the first quarter of 2021 attributed to a recovery in oil prices. Revenue came in at $32.03 billion, exceeding analyst’s expectations. Meanwhile, it reported a net income of $1.377 billion. This may not be much for a company of this magnitude. But, it is still a drastic improvement from a loss of $655 million the previous quarter. The company is scheduled to report its second-quarter earnings report at the end of July. Given that the company has shown signs of recovery in its first quarter, would you buy CVX stock ahead of its earnings report?
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Enphase Energy Inc
Following that, we have the provider of energy management solutions company, Enphase. It engages in designing, developing, manufacturing, and selling microinverter systems for the solar photovoltaic industry. The company sells its solutions to solar distributors, and directly to large installers. Impressively, the company stock has risen over 220% over the past year.
In June, the company announced the launch of its Encharge battery storage system in Germany. This marks the product’s first expansion into a market outside the U.S. Encharge will help meet installer and homeowner needs for a safe and reliable all-in-one solution. Moreover, there is also a mobile app for homeowners to intelligently manage their solar energy in Self-Consumption Mode. With due time, we could be seeing further expansion to other markets as the company continues to improve its product.
On top of that, Palomar Solar, a leading solar energy installation company, also expanded its Enphase Storage business back in April. According to Palomar, there has been a surge in demand from its customers after the company integrated Enphase Storage. So, it ensures that Palomar could provide maximum value to its homeowners. Given how Enphase is constantly expanding its reach and striving to be one of the best solar companies in the world, would you add ENPH stock to your watchlist?
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First Solar, Inc
Next up, we have the solar company that claims to have the strongest financial stability in the industry, First Solar. It has developed, financed, engineered, constructed, and currently operates many of the world’s largest grid-connected photovoltaic (PV) power plants. Despite having a relatively flat year in the stock market, FSLR stock has still risen over 50% over the past year.
Last month, First Solar announced that it will invest $680 million in expanding America’s domestic PV solar manufacturing capacity by 3.3 gigawatts annually. The facility will be one of the most advanced of its kind in the solar industry. This new facility will be located in Ohio and is expected to produce an enhanced thin-film PV module for the utility-scale solar market in the U.S. Safe to say, these investments in American-made solar technologies are the perfect embodiment of President Biden’s strategy to build out domestic manufacturing and supply chains.
During its first quarter, it delivered strong operational and financial results. The company posted net sales of $803 million, an increase of $194 million from the prior quarter. Meanwhile, operating income for the quarter was $252 million, representing an increase of 434% compared to the prior quarter. With all these in mind, would you consider FSLR stock as a top renewable energy stock to watch?
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Proterra Inc
To sum it up, we have one of the newer electric vehicle (EV) companies, Proterra. The company made its debut on Nasdaq just approximately a month ago. Essentially, it is a company that designs and manufactures zero-emission EVs as well as providing battery technology. Since its debut, PTRA stock has slid by over 25% and this could present a buying opportunity for investors who have been keeping tabs on the company.
Just a week after being publicly listed, the company and Miami-Dade County announced a fleet electrification project. County will be acquiring 42 Proterra ZX5+ electric transit buses along with plans to install 75 Proterra chargers across three bus depots. The company expects the first electric buses to be delivered in 2022. This goes to show Proterra’s ability to deliver a comprehensive, full-scale deployment of EV fleets with its technology solutions.
Furthermore, Proterra has also announced that 10 transit agencies have been awarded Federal Transit Administration (FTA) Low or No Emission Program Grants to procure Proterra’s services in partnership with Optimal Electric Vehicles. Investors can view this as a testament to Proterra’s ability to deliver comprehensive fleet electrification solutions to commercial vehicle customers. Now, given the recent dip in PTRA stock, would you view this as an opportunity to buy on the dip?
