Top 5 Renewable Energy Stocks For Q4 2022

Brookfield and its institutional partners formed a strategic partnership with Cameco (CCJ) to acquire Westinghouse, one of the world’s largest nuclear services businesses. The future for renewable energy is bright, and these green energy stocks are poised to profit on the growing trend toward sustainability. NextEra Energy is a major player in the American green energy industry. On a global scale, the company is one of the largest producers of wind and solar energy. The company has also started to leverage its expertise in inverters to create other smart energy solutions. Oil and gas energy stocks often decline in value during a recession, because there is less demand and falling prices for their products during an economic contraction.

As good as Brookfield has been in the past, I think it could create even more value for investors in the future. That’s because the global economy is rapidly working to transition to renewables, putting Brookfield in an ideal spot to benefit from this megatrend. Jenna Lofton, the founder of StockHitter.com, has been actively trading stocks and investing for nearly 11 years. Stocks like these provide a decent return on even the slowest of markets but, and many analysts believe, they have yet to truly hit their stride. The push for clean energy grows more and more each year and the market has only recently mobilized to meet those demands.

You should monitor the performance of your holdings and exit positions that are no longer serving you. Clearway Energy Inc is an electric utility company that owns, operates, and acquires contracted renewable and conventional energy generation and thermal infrastructure assets across the U.S. The company segments its operations into conventional generation, renewables and thermal divisions. Together, these groups control a portfolio of natural gas, oil, solar, and wind-fueled power-producing facilities. Most of the energy produced by the NRG Yield can be derived from its renewable assets.

That’s exactly why I think of Canada’s Enbridge (ENB 1.33%) as a clean energy play. New sources of green energy, like solar, have become dramatically less expensive over the past decade. This is cutting into the demand for coal and could also start hurting demand for oil, gas and other traditional energy sectors, potentially jeopardizing their long-term value. Energy prices can swing widely and rapidly, depending on the state of the global economy.

Bloom Energy (BE)

It’s worth noting that between 2020 and 2024, NextEra Energy Partners expects annual average cash distribution growth in the range of 12% to 15%. Polaris Infrastructure has been focused on renewable energy projects in Latin America. Currently, the company has geothermal and hydroelectric projects. As of March 2021, the company reported 72 MW geothermal project in Nicaragua.

• As of 2023’s first quarter, it had contracts in place to sell panels stretching out into 2029, giving it significant visibility into future revenue.
• “America is in the midst of an energy transition,” according to the 2022 report by trade group American Clean Power.
• Enphase’s smart choice of partnering with solar module manufacturers results in low costs and increased revenues.
• Founded in 1907 with a current headquarters in The Hague, the Netherlands, Shell has gone through a bit of reinvention, moving its home base to the United Kingdom and changing its name to Shell.
• It is engaged in designing, developing, manufacturing, and selling microinverter systems for the solar photovoltaic industry.

This focus on the green revolution has created significant opportunity for investors looking to ride the green wave right to the top through renewable energy stocks. In these segments, you will encounter wind turbines, wave harvesting stations, decarbonization efforts and more. https://g-markets.net/helpful-articles/the-5-different-types-of-doji-candlestick-patterns/ Moreover, you will run into companies working on ESG efforts that will make them more palatable to investors. Firms that engage in the production and distribution of energy from limited resources such as coal, oil and natural gas are considered nonrenewable energy stocks.

Our AI will rebalance your investments on a weekly basis to optimize performance. All you have to do is build a portfolio of Kits and leave the rest of portfolio management to AI. The remaining 4% of EBITDA comes from Enbridge’s renewable power investments.

Expert Q&A on renewable energy

Passive income seekers may be interested to know that this dividend aristocrat has increased payouts for more than 25 consecutive years. Net income came in at 51 cents per diluted share, down from 61 cents a year ago. The list below includes stocks involved in the production of renewable energy. Keep in mind that performance is only one data point, and stocks that are currently performing well may not be the best-performing stocks next year — or even next week.

In addition to being one of Wall Street’s best green energy stocks, DNNGY was also named the world’s most sustainable company in 2022 by Corporate Knight’s 2022 Global 100 Index. According to Deloitte’s “2023 renewable energy outlook,” residential solar demand is “growing faster than ever,” up 35% in the first half of 2022 from the same period a year ago. This is due to households reacting to “rising retail electricity prices and weather-driven power outages,” the report states. The influx of government spending may help the industry continue to grow. As of April 2022, Precedence Research estimated that the renewable energy market will grow to $1,998.03 billion by 2030. That represents significant growth from Allied Market Research’s 2020 estimate that the global renewable energy market had been worth $881.7 billion.

Enphase Energy (ENPH)

Stocks have gained 2.59% in the past week and total revenue for the company last year was at $34 billion. The company also boasts a forward dividend and yield of 2.04 (4.16%). With a forward dividend of 1.69 (0.72%), and stock gains reaching 38.63% in the past 12 years, the Danish company is attracting a lot of attention from bullish investors and income investors alike.

That said, it also includes more traditional energy companies, like utility Consolidated Edison, that are dipping their toes into the clean energy space (utilities make up about 20% of the portfolio). There are a growing number of options for investing in renewable energy funds. Some funds focus on a particular sub-sector, such as wind or solar power, while others invest across the ‘clean energy’ sector as a whole. If you believe in renewable energy, then renewable energy stocks would be a good investment for you.

• The company also targets to be 100% carbon emission-free by the year 2035.
• If you believe in renewable energy, then renewable energy stocks would be a good investment for you.
• What I’m left with are Brookfield Renewable Partners (BEP 2.39%), utilities (which I also own, but for different reasons), and oil-focused Enbridge.
• With each stock we have mentioned the number of hedge fund investors as of the end of the fourth quarter of 2022.

Renewable Energy Group is a global producer and supplier of renewable fuels like biodiesel and renewable diesel, renewable chemicals, and other products. EG is committed to being a long-term leader in bio-based fuel and chemicals. It has announced to increase the production capacity of one of its plans.

Green Energy Industry in the US

With high project costs and limited revenue prospects, much of the renewable energy sector depended on cheap debt that fueled rising valuations throughout the past decade. The sector’s success depends on fluid supply chains and cohesive global trade policy. Slowdowns and snags in both disrupted companies in the industry further.

Tesla is one of the leading electric car manufacturers, with its market capitalisation of almost $350 billion placing it in the top 10 largest companies listed on the Nasdaq index. However, question marks remain over the cash generation potential of its renewables business. SSE is also carrying a high level of debt, which could leave it exposed to higher interest rates once its fixed rate debt matures.

NextEra currently has a portfolio of 5,830 MW of renewables, which is largely weighted towards wind energy. Additionally, the partnership unit has 4.3 Bcf of natural gas pipeline capacity. The partnership unit has long-term contracts (15 years in contract life) with credit-worthy counterparties. This ensures stable cash flows and cash distribution to unit holders. According to Gurufocus.com’s proprietary calculations for fair market value, ENPH rates as significantly undervalued.

However, it’s not all been smooth driving for Tesla, with its share price falling by over 70% in the last year. Concerns over a slowdown in consumer spending, continued supply chain disruption in China and the future of CEO Elon Musk have weighed on the company’s valuation. SSE is one of the largest suppliers of gas and electricity in the UK, with the FTSE 100 listed company  having a market capitalisation of £18 billion. However, investors should expect some volatility, with the company facing competition from low-cost Asian manufacturers and the threat of governments reducing solar energy incentive schemes. By 2031, it expects annualized sales growth to average between 30% and 35%.

But the goal here isn’t to generate income — it is to broadly track the global clean energy sector. If that’s your goal too, it could be a solid fit for your portfolio. Although increased demand and an improving economic outlook may create further short-term difficulty for many renewable energy stocks, we may have turned a corner in the sector. These three renewable energy stocks remain undervalued, as measured by forward P/E, and represent an opportunity for investors bullish on sustainability.

By 2030, clean energy is expected to account for 42.5% of Europe’s total energy mix, up from the current 32%. The stocks added to our list below were selected on the basis of the number of hedge funds holding stakes in them. For that we analyze the data of 866 hedge funds tracked by our system. For each stock we mentioned the number of hedge funds having stakes in it.

Although Brookfield Renewable Partners and Hannon Armstrong are pretty specific investment opportunities, iShares Global Clean Energy ETF is one example among many ETFs you could choose from. If the answer is broad exposure, an ETF would likely be the best option. Brookfield Renewable Partners could do the trick if you’d like to generate some income and dividend growth while getting exposure to different power sources. If you wanted to avoid company-specific issues, then high-yield Hannon Armstrong’s approach of loaning money across different power sources and companies might be most attractive.