Are These The Best Energy Stocks To Buy Right Now?
Energy stocks are riding on strong momentum thus far this year. While the stock market as a whole struggled due to various economic uncertainties, energy has been one of the best-performing sectors. The demand for energy continues to grow and prices are spiking in many major global markets. For instance, crude oil prices went beyond $100 a barrel this year, fueled by the reopening of the economy and the Russian invasion of Ukraine. Meanwhile, prices for wind and solar power have climbed up to 30% over the past year.
One could be looking at the likes of Enphase (NASDAQ: ENPH). The renewable energy firm reported a record quarterly revenue of $441.3 million in the first quarter of 2022. Along with it, the company shipped approximately 2,838,393 microinverters and 120.4-megawatt-hours of Enphase IQ™ Batteries. All these are testament to the increasing demand for renewable energy.
Elsewhere, ExxonMobil (NYSE: XOM) also recently made three new discoveries offshore Guyana. Now, it estimates that its recoverable resource for the Stabroek Block will increase to nearly 11 billion oil-equivalent barrels. These discoveries will likely help with the company’s future development plans and reliably supply affordable energy to meet increasing demand around the world. With all said and done, energy stocks appear to be in a steady position. So, here are some of the top energy stocks to keep an eye on in the stock market today.
Energy Stocks To Watch Right Now
- NextEra Energy Inc (NYSE: NEE)
- JinkoSolar Holding Co., Ltd (NYSE: JKS)
- First Solar, Inc. (NASDAQ: FSLR)
- Alliance Resource Partners, L.P. (NASDAQ: ARLP)
To start the list, we have the electric power and energy infrastructure company, NextEra. In detail, its segments include FPL, NEER, and Gulf Power. The FPL segment is responsible for the generation, transmission, distribution, and sale of electric energy in Florida. Meanwhile, its NEER segment owns, develops, constructs, and operates electric generation facilities in wholesale energy markets in North America. As one of the world’s largest utility companies, it should not be surprising that investors keen on the energy industry would keep a close eye on NEE stock. With the stock trading sideways for most of the year, could things be turning around soon?
Earlier this week, NextEra Energy Transmission, a subsidiary of the company, announced that it was awarded the Minco-Pleasant Valley-Draper transmission line project by the Southwest Power Pool (SPP). This marks the second project award in SPP as it continues to work on its goal of creating America’s leading competitive transmission company. Also, this aligns with its strategy of adding high-quality regulated assets to its portfolio. With the project expected to go online in 2024, would you consider adding NEE stock to your watchlist?
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Following that, we have a top solar company in JinkoSolar. By and large, the company operates in the photovoltaic (PV) industry. It builds a vertically integrated solar power product value chain, manufacturing the likes of silicon wafers and solar modules. Its services include solar power generation and solar system Engineering Procurement Construction (EPC) and processing services. Despite a bumpy start to the year, JKS stock has still climbed by more than 15% since the start of the year.
JinkoSolar continues to push its boundaries as it works towards being the largest innovative solar module manufacturer in the world. On Wednesday, the company announced that it achieved a major technical breakthrough for its 182 mm high-efficiency N-type monocrystalline silicon solar cell. This is yet another world record with the maximum solar conversion efficiency of 25.7% for its large-size monocrystalline silicon TOPCon solar cell. So, the company is now confident that it is in a good position to lead the industry with its innovative products. With that in mind, would you consider JKS stock to be a top energy stock to watch right now?
Another top solar technology company to note right now would be First Solar. Much like JinkoSolar, the company engages in the manufacture of solar panels and utility-scale photovoltaic (PV) power plants. Besides that, it is a global provider of sustainably produced eco-efficient solar modules. The company’s advanced thin-film photovoltaic (PV) modules represent the next generation of solar technologies. As such, it serves as a competitive, high-performance, lower-carbon alternative to conventional crystalline silicon PV panels.
Earlier this month, First Solar announced that it would power 17% of the annual energy needs of Nevada Gold Mines (NGM). For those unaware, this is a joint venture between Barrick Gold Corporation (NYSE: GOLD) and Newmont Corporation (NYSE: NEM). It is also the single largest gold-producing complex in the world, producing approximately 3.5 million ounces of gold a year. Now, being chosen by NGM as a partner is a clear validation of First Solar’s ability to deliver high-performance modules. So, do you think FSLR stock will be a viable investment at its current valuation?
Alliance Resource Partners
Last but not least, let us look at Alliance Resource. Unlike the previous entries, this is a diversified natural resource company that produces and markets coal. It primarily caters to utilities and industrial users in the U.S. Besides that, the company also buys and resells coal while owning minerals and royalty interests in approximately 1.5 million gross acres of oil and gas producing regions. Impressively, ALRP stock has been on a steady upward trajectory over the past year. The stock skyrocketed by more than 200% within the period.
Now, investors are turning their attention to ALRP stock yet again. This comes after the company provided encouraging preliminary results for its quarter ended March 31, 2022. Alliance expects its net income for the quarter to be in a range of $35.0 to $37 million, as compared to $24.7 million in the prior year’s quarter. As a result, the company is also raising its guidance for the full-year 2022. It now expects 2022 coal sales volumes to be approximately 500,000 tons above its initial guidance ranges. Also, coal price per ton should exceed its previous expectations by 10% to 22%. All in all, there appear to be plenty of reasons for investors to be excited about ALRP stock right now.