Should Investors Be Adding These Top Renewable Energy Stocks To Their January Watchlist?
As we all know, renewable energy stocks were tearing through the stock market in 2020. The sector has undoubtedly outpaced the broader energy industry that still seems to be feeling the sting from coronavirus-related impacts. There are two key reasons for the current performance of the top renewable energy stocks to watch now. They are the current state of the environment and the political climate in the U.S.
Unfortunately, climate change shows no signs of slowing down and has incentivized responsible parties to take action. Recall president-elect Joe Biden’s campaign pledge to invest $400 billion in clean energy technologies over the next ten years. Thus, with the inauguration day just two weeks away, we could see the huge boost to the industry set in motion. Even before that, the recent $900 billion U.S. stimulus package also saw an allocation of $11 billion towards renewable energy technology. With all these funds moving into place, could the top renewable energy stocks have more room to grow in 2021?
To put things into perspective, Blink Charging (BLNK Stock Report) has exploded with gains of over 2000% in the past year. Another rising star in the industry would be Sunrun (RUN Stock Report) with an increase of over 400% in the same time. All things considered, I can see why investors have been flocking to the sector in recent months. But, because of the technological nature of the industry, it can be rather competitive. Companies looking to one-up each other across the board can make it hard for investors to sort the wheat from the chaff. Well, if you are looking to do so, here is a list of the top renewable energy stocks to watch this month.
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Top Renewable Energy Stocks Right Now
- ReneSola (SOL Stock Report)
- Canadian Solar (CSIQ Stock Report)
- Enphase Energy (ENPH Stock Report)
Top Renewable Energy Stocks To Watch This Month #1: ReneSola
ReneSola (NYSE: SOL) is a leading solar project developer and operator. The company leverages its global presence and solid experience in the industry throughout its work. Notably, SOL stock hit a new all-time high during yesterday’s trading session but took a breather sliding 6% by the closing bell. This came after the company made a huge announcement regarding a massive European collaboration.
Yesterday, news broke that ReneSola signed a Memorandum of Understanding (MOU) with Eiffel Investment Group (EIG). To point out, EIG is a leading asset management firm with over $3.6 billion in its portfolio. The MOU will see the establishment of a joint venture that will finance ReneSola’s projects across Europe. ReneSola European Region CEO Josef Kastner said, “We are excited to form a joint venture with Eiffel Investment Group, a long-term strategic partner and proven leader in business financing. Our industry requires efficient and scalable financing models to meet demand. We expect the joint venture to help facilitate the development of our existing pipeline of project opportunities and prospective projects that meet our development criteria.” This is a great play by the company as it further establishes its presence in the growing renewable energy market in Europe. Evidently, we can see why investors flocked to SOL stock yesterday.
In its recent quarter fiscal reported in December, the company reported bringing in $9.75 million in total revenue. Adding to that, it also saw a 66% year-over-year rise in cash on hand and ended the quarter with $15.57 million. In summary, with an expanding pipeline of business activity, ReneSola is optimistic about its growth prospects. Given its recent performance, it seems that investors share the same sentiment about SOL stock. Do you?
Top Renewable Energy Stocks To Watch This Month #2: Canadian Solar
Another top renewable energy stock is Canadian Solar (NASDAQ: CSIQ). Canadian Solar is a solar tech company that manufactures solar photovoltaic modules and manages large scale solar projects. More importantly, CSIQ stock is up by over 120% in the past six months. The company must be doing something right, to have investors this keen to buy in.
On the financial front, it seems to be doing fairly well. In its third-quarter fiscal posted in November, the company saw total revenue of $914 million. This was coupled with a phenomenal 109% jump in cash on hand year-over-year which saw it ending the quarter with an impressive $1.1 billion. In detail, the company stated, “As solar energy enters a new era of higher growth driven by grid parity and accelerating supply-side consolidation, we see a window of opportunity to grow global market share by leveraging our leadership position across premium and distributed generation markets, investing in state-of-the-art and highly cost-competitive capacity, and increasing the level of vertical integration of our manufacturing process to better control manufacturing costs and capture value. This is reflected in our updated capacity expansion plan, which we are already implementing.” Naturally, investors would be inclined to fall back on industry giants pulling such large numbers.
Despite its fantastic performance last year, Canadian Solar is not resting on its laurels just yet. On January 5, it sold two solar projects to BluEarth Renewables. CEO Shawn Qu said, “This is our third transaction with BluEarth, and given their strong Alberta presence and deep experience in operating and maintaining large-scale clean energy projects, we believe they are the right owners for the Hays and Jenner solar projects.” Given the company’s current momentum, could CSIQ stock see new highs this year? You tell me.
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Top Renewable Energy Stocks To Watch This Month #3: Enphase Energy
Following that, we have Enphase Energy (NASDAQ: ENPH). It is a renewable energy superstar that most green investors would be familiar with. In brief, the California-based energy tech company designs and manufactures software-driven home energy solutions. ENPH stock has had a terrific year on the stock market with gains of about 500% last year. In fact, it hit a new all-time high yesterday and ended the trading day up by 5%. This comes after it received high praise from Goldman Sachs (GS Stock Report).
Earlier this week, the bank upgraded ENPH stock from neutral to buy. That’s not all, the bank also bumped the company’s stock price target to $232 a share. Justifying the increase, Goldman described the company as an early growth story with “multi-year, multi-faceted growth potential”. By and large, this likely revitalized the ENPH stock rally from when it was revealed to be a new constituent of the S&P 500. From the looks of things, we could be amidst some exciting times for ENPH stock and investors are well aware.
Looking at its third-quarter fiscal posted in October, you can see how it has earned its stripes. The company reported total revenue of $178 million for the quarter. It also saw a 225% jump in cash on hand year-over-year. This amounted to over $661 million. Enphase explained, “Demand for our core microinverter products rebounded strongly in the third quarter of 2020. We experienced record sell-through from distribution to installers, resulting in channel inventory slightly below the low end of our typical target range. Sales to distributors improved significantly and were broad-based geographically.” Overall, Enphase seems to have recovered from coronavirus-related impacts. Could this mean big gains for ENPH stock moving forward? I’ll let you decide.
