Can These 4 Top Clean Energy Stocks Continue Their Momentum This Month?
Clean energy stocks are white-hot in the stock market today. These companies with a strong environmental focus are getting all the attention on Wednesday. Why is that? On a fundamental level, investors are cheering the fact that the Biden administration is expected to announce a $2 trillion plan to speed up the transition to green energy in the U.S. And that’s helping clean energy stocks across the board.
Some of the top clean energy stocks such as Enphase Energy (NASDAQ: ENPH) and Monolithic Power Systems (NASDAQ: MPWR) are resurfacing after tumbling from their January peaks. From Biden’s plan, combating climate change and boosting green energy is on top of the list. In it, the president proposed $174 billion in funding for electric vehicles. He’s also looking to expand tax credits for clean energy projects.
According to research forecasts by Allied Market, the global clean energy market will be worth $1.5 trillion by 2025. As we speed up the transition to electric vehicles and solar-powered homes, several companies that are focused on renewable sources of energy are well-positioned to benefit. With all that in mind, do you have a list of top clean energy stocks on your watchlist right now?
Top Clean Energy Stocks For Your Watchlist
- Quantumscape Corp. (NYSE: QS)
- ChargePoint Holdings Inc. (NYSE: CHPT)
- Blink Charging Co. (NASDAQ: BLNK)
- FuelCell Energy Inc. (NASDAQ: FCEL)
First, up the list, QuantumScape is a pick-and-shovel play amid the EV boom that is worth the attention. The company is a renewable energy company that produces solid-state lithium-metal batteries for electric cars. QuantumScape’s batteries could be game-changing as they aim to increase energy densities and enable fast charging. On March 31, the company announced it had successfully met a technical milestone, clearing the way for a $100 million investment from Volkswagen (OTCMKTS: VWAGY). Right after the announcement, QS stock skyrocketed during after-hours trading.
“We are pleased to report that the QuantumScape cells met the technical milestones in our labs in Germany that we had previously agreed upon,” said Frank Blome, head of the Volkswagen Group’s Center of Excellence Battery Cell.
Some observers call the Silicon Valley EV play’s solid-state quantum lithium-metal the potential holy grail for the EV market. For the uninitiated, Quantumscape’s battery engineering has a composition that maintains significantly higher energy density than today’s lithium-ion batteries. Should the company be successful in its execution, we could be looking at higher storage capacity, improved charging performance as well as cost-efficiency. And when that happens, QS stock could be looking at a long growth runway indeed.
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ChargePoint Holdings Inc.
Next on our list, ChargePoint Holdings Inc. is an EV infrastructure company that operates one of the largest networks of EV charging stations. The company has recently gone public following the completion of its merger with Switchback Energy Acquisition. With over 90 million charges delivered, the company continues to expand its vertical by providing its solution to large fleets and businesses. CHPT stock received a shot in the arm on Wednesday amid Biden’s infrastructure plan, sending its stock closing 19% higher.
This came after the progress update regarding the National Highway Charging Collaborative. To date, ChargePoint and NATSO have installed 15 DC fast charging spots in the first year of this initiative. “ChargePoint’s ongoing effort to significantly expand access to charging across cities, rural communities, and along highways is core to our mission and the collaboration with NATSO is already making significant progress toward that goal,” said Colleen Jansen, Chief Marketing Officer, ChargePoint.
Earlier this month, the White House reiterated its plan to build more than 500,000 EV chargers over the next decade. Now, ChargePoint says it has more than 70% market share in the North American Level 2 charging network. With Biden’s plan, investors are adding CHPT stock to their portfolios as public and private investment combinations grow in the sector. With all that being said, as EV adoption continues to grow, will CHPT stock be one of the best clean energy stocks to buy this year?
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Another pick-and-shovel play riding the ‘Green Tidal Wave’, and riding it well is Blink Charging. Since our first discussion about the stock in June 2020, BLNK stock has skyrocketed more than 2,000%. It may be even harder to believe that the stock was just a penny stock earlier last year. Blink Charging operates a network of nearly 15,000 electric vehicle charging stations as of December 31, according to the company.
Earnings haven’t been too shabby either. Total revenue for the first nine months of 2020 came in 84% higher to $3.8 million. Blink has made significant progress with its owner/operator strategy, further increasing its customer base. The company’s chargers deployed during the quarter increased by 87% compared to a year earlier.
With the adoption of electric vehicles accelerating at an unprecedented rate, it certainly presents an opportunity for companies like Blink. With that in mind, will you consider adding BLNK stock to your portfolio?
After a weak start from the beginning of the week, FuelCell Energy stock saw a boost in their stock price on Wednesday. FuelCell, like the other stocks on this list, is seeing a rise amid Biden’s infrastructure plan. FuelCell is a fuel cell company that designs and operates its own power plants. The company is a global leader in delivering clean, efficient, and affordable fuel cell solutions configured for the supply, recovery, and storage of energy.
Hydrogen is no doubt one of the most expensive clean energy sectors to develop. Therefore, many fear it will fall by the wayside because of its cost. The details from Biden’s plan, however, are giving clean energy stocks like FCEL stock a needed boost after the last few weeks’ slump.
On a more fundamental level, the company’s business has been stagnating in the last five years as earnings have been deteriorating. The question here is, will the Biden infrastructure plan bring new life to FCEL stock? Only time will tell.