Top Clean Energy Stocks For Your Late 2021 Watchlist
When it comes to clean energy stocks in the stock market today, investors have plenty of options to choose from. If anything, this would be thanks to a global movement to mitigate the current effects of climate change. As a result, governments across the globe are now increasing their investments towards environmentally relevant sectors aggressively. Just last week, the U.S. Senate passed a $1 trillion bipartisan infrastructure bill. The likes of which will encompass public infrastructure ranging from internet networks and public transport to energy grids.
In particular, the current bill will see up to $73 billion go towards rebuilding and upgrading America’s existing electric grids. Moreover, it will also see the expansion of clean energy throughout the nation. Furthermore, the President is also targeting for half of all automobiles sold in the U.S. to be zero-emission vehicles by 2030. Last Thursday, he said, “It’s electric (the future) and there’s no turning back. The question is whether we’ll lead or fall behind.” After considering all of this, the clean energy industry could be looking at major tailwinds ahead.
Accordingly, I could see some of the top sectors in the green energy business gaining traction in the stock market. On one hand, the booming solar energy industry could see a resurgence in investor interest. Notably, the likes of Enphase (NASDAQ: ENPH) are now sitting on gains of over 530% since its pandemic era low. On the other hand, the electric vehicle (EV) charging industry would also be in focus thanks to the current infrastructure bill. Even now, there are more emerging names in the field like Volta Industries (NYSE: SNPR) looking to get a piece of the action. Could one of these trending clean energy companies be worth adding to your watchlist now?
Best Clean Energy Stocks To Buy [Or Sell] In August 2021
- NextEra Energy Inc. (NYSE: NEE)
- Brookfield Renewable Partners (NYSE: BEP)
- Canadian Solar Inc. (NASDAQ: CSIQ)
NextEra Energy Inc.
NextEra Energy is a clean energy company with headquarters in Florida. The company owns Florida Power & Light Company, which is one of the largest rate-regulated electric utilities in the U.S. as measured by retail electricity produced and sold. It serves more than 5.6 million customer accounts, supporting more than 11 million residents across Florida with clean and reliable electricity. Impressively, the company also owns one of the world’s largest generators of renewable energy from wind and sun and is a leader in battery storage. NEE stock currently trades at $83.67 as of 3:32 p.m. ET.
Recently, the company announced that it will build a 260-MW solar park with storage in Arizona. This would make the solar park one of the largest of its kind in the U.S. state. Dubbed the Sonoran Solar Project, it will encompass approximately 3,000 acres and the project is scheduled to begin operations in June 2023. The energy storage component of this project uses batteries to store renewable energy and make it available even when the sun isn’t shining, improving the reliability and efficiency of the electric grid and making more renewable energy available more hours of the day.
Last week, the company also announced that together with NextEra Energy Partners (NYSE: NEP), members of the senior management team will participate in various investor meetings throughout August. Management will discuss long-term growth rate expectations for the company. Also, in late July, NextEra declared a regular quarterly common stock dividend of $0.385 per share. Given all of this, will you consider adding NEE stock to your portfolio?
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Brookfield Renewable Partners LP
Brookfield Renewable Partners (BEP) operates one of the world’s largest publicly traded, pure-play renewable power platforms. Its portfolio consists of hydroelectric, solar, wind, and storage facilities across the globe that totals over 20,000 megawatts of installed capacity. Notably, it also has an approximately 31,000-megawatt development pipeline. BEP stock currently trades at $38.23 as of 3:33 p.m. ET and is up by over 30% in the past year.
On August 5, 2021, the company reported a strong second quarter. Firstly, it generated funds from operations of $268 million, a 23% increase on a normalized per unit basis compared to a year ago. This was driven by its assets performing well with high levels of asset availability. BEP also says that it continues to benefit from growth from new acquisitions and development assets coming online. Secondly, it signed 28 agreements for approximately 800 GWh of renewable generation with corporation off-takers across all major industries.
The company also reported a revenue of $1.02 billion for the quarter, an 8.2% increase year-over-year. Net income for the quarter was $110 million compared to a loss of $10 million a year ago. BEP also executed a number of key strategic initiatives in the quarter. This includes securing a 25-year contract-for-difference to support almost 1.5 gigawatts of offshore wind and initiating one of the largest onshore wind repowerings in the world. All things considered, is BEP stock worth buying right now?
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Canadian Solar Inc.
Another name to consider in the clean energy trade now would be Canadian Solar. In brief, it is one of the largest solar tech and renewable energy players in the world today. To highlight, the company is a leading manufacturer of solar photovoltaic (PV) modules. Canadian Solar also offers a wide variety of solar energy and battery storage solutions, developing utility-scale solar projects globally. For a sense of scale, customers from over 150 countries currently employ Canadian Solar’s PV modules.
Given the company’s massive portfolio, investors could be turning towards CSIQ stock now. As it stands, the company’s shares currently trade at $37.19 as of 3:33 p.m. ET. This would be after gaining by over 150% since its pandemic era low last year. As the world races to reduce its carbon emissions, Canadian Solar’s utility-scale offerings would be in demand. Could this be enough to drive the company’s growth moving forward?
For one thing, the company would be in focus after reporting stellar figures in its second-quarter fiscal last week. In it, Canadian Solar posted a total revenue of $1.43 billion for the quarter. This marks a whopping 105% year-over-year surge. Adding to that, the company also ended the quarter with $814.19 million in cash on hand, a solid 40% year-over-year increase. Moving forward, CEO Shawn Qu had this to say, “Canadian Solar is well-positioned to capture long-term growth through continued investments in high-quality capacity, project pipeline, and technology R&D, and continues to focus on delivering long-term sustainable returns for shareholders.” Would all of this make CSIQ stock a top pick in the market now?
