5 Green Energy Stocks To Potentially Cash In On The Green Energy Boom
With energy prices continuing to climb due to threats of low supply, investors may be keen to look at green energy stocks in the stock market today. As many countries have already pledged to be carbon neutral by mid-century under the Paris Agreement, investors are looking at top green energy stocks that could cruise along this momentum. Of course, the delays in the passage of U.S. infrastructure bills has slowed down the development of clean energy solutions. Not to mention, rising bond yields have also put some pressure on some of these alternative energy names.
Near-term issues aside, this section of the stock market is still worth a look for investors wanting to play the long-term transition to green energy. After all, the sector is in the position to benefit from strong trends for clean energy, renewable resources and decarbonization. Green energy companies that can take advantage of these tailwinds could see higher growth rates in the long run.
Recall that the Biden administration is proposing as much as $2 trillion in infrastructure in the coming decade. For investors, an investment of this scale only means that top green energy stocks would eventually benefit. Whether you’re looking to invest in solar energy stocks or green hydrogen stocks, there are many to keep your eyes on in the stock market. The biggest question at hand is, which green energy stocks are worth watching right now?
Best Green Energy Stocks To Watch In The Stock Market Today
- Clean Energy Fuels Corp. (NASDAQ: CLNE)
- Enphase Energy Inc. (NASDAQ: ENPH)
- FuelCell Energy Inc. (NASDAQ: FCEL)
- ChargePoint Holdings Inc. (NYSE: CHPT)
- Plug Power Inc. (NASDAQ: PLUG)
Clean Energy Fuels
Clean Energy Fuels (CLNE) is one of the largest providers of clean fuel for the transportation market. It strives to decarbonize transportation through the development and delivery of renewable natural gas (RNG). The company essentially allows thousands of vehicles to reduce their greenhouse gas emissions. It also operates a vast network of fueling stations across the U.S. and Canada.
Many big players in the energy and logistics industries are aware of the importance of RNG. In light of this, Clean Energy has secured a number of big partnerships in recent months to help it develop the necessary infrastructure.
The most recent notable partnership was with Amazon (NASDAQ: AMZN). The biggest e-commerce player aims to be carbon-neutral by 2040 and its partnership with Clean Energy is a crucial step toward that goal. This partnership alone might be even enough to tempt investors to get on board CLNE stock. Will you do the same?
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California-based Enphase Energy develops mainly home energy solutions that connect solar generation, energy storage and management on one intelligent platform. The company announced in late September that Sunpro Solar will now promote and install Enphase Encharge™ battery storage systems.
This is in addition to Enphase solar systems as its all-in-one home energy management solution. For starters, Sunpro Solar is a top rooftop solar provider and dubbed one of the fastest-growing residential solar-plus-storage service providers in the U.S.
On top of that, Enphase has also been actively expanding its reach to various markets lately. First, the company announced last month that it has entered the Brazilian solar market with the introduction of its IQ 7+™ microinverters. If anything, this shows that the company is not resting on its laurels and continues to strive to maintain its position as one of the leading providers of micro inverter-based solar-plus-storage systems. All things considered, would you add ENPH stock to your watchlist?
A wave of interest in green energy, coupled with the meme stock phenomenon, has put FuelCell Energy on investors’ radar. As the name suggests, the renewable energy company focuses on fuel cell technology. The company delivers efficient and clean solutions for the supply, recovery, and storage of energy.
It also develops and maintains megawatt-scale fuel cell systems for utilities, industrial, and large municipal power users. What’s more, the company also saw its annualized production rate increase and has a goal of achieving an annualized production rate of 45 megawatts by fiscal year-end 2021.
Admittedly, it may be a hard pill to swallow if you have bought FCEL stock earlier in February and see the stock trading near penny stock territory now. Even if investors and traders aren’t hyped up about FuelCell Energy right now, you can’t deny that the company is moving forward and staying busy. Its third-quarter revenue reported last month represented an increase of 43% over the prior-year quarter. Given the healthy developments and improved fundamentals, will FCEL stock make your list of top green energy stocks to buy?
Electric vehicle charging infrastructure company, ChargePoint is another green energy stock to watch. The company facilitates mass EV adoption with one of the largest charging networks in the world. As part of its network charging systems, it provides an open platform that integrates with system hardware from companies and other manufacturers. It does so by connecting systems over an intelligent network that provides real-time information about charging sessions.
ChargePoint’s strong second-quarter earnings were largely ignored. Despite posting strong revenue growth for the quarter, CHPT stock sits about 50% lower year to date. While the bears may be louder than the bulls in this EV charging stock, there’s no denying that the future of vehicles is indeed electric.
Although a lower tax credit for EV purchasers seems highly likely at this point, the passage of the budget and infrastructure bill would still be very positive for CHPT stock on the whole. With the shift to electric vehicles and ChargePoint’s leading market position, don’t be surprised if the stock turns out to be a multibagger investment over the long run.
Plug Power is an industrial company that develops hydrogen fuel cell systems to replace conventional batteries in equipment and vehicles. The company has been ramping up its use of hydrogen as a fuel and has been expanding plans for green hydrogen production.
Last month, the company said it would construct a green hydrogen production facility in Fresno County, California. Once complete, it could produce about 30 metric tons of liquid green hydrogen and serve customers from San Diego to Vancouver, according to a company press release.
Plug Power’s alternative energy solutions have already found success in the industrial sector. Impressively, the company also posted record second-quarter numbers and raised its 2021 guidance. During the quarter, net revenue was $124.6 million, as compared to $68 million in the prior-year quarter. Meanwhile, gross billings rose to $126.3 million, from $72.4 million in the same period last year. Given all these, will you include PLUG stock on your watchlist?