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Best Stocks To Buy This Week? 3 Energy Stocks To Watch

Given how the world’s hunger for energy demand is on the rise, these are the top energy stocks to know.

renewable energy stocks

Best Energy Stocks To Watch Right Now

Energy stocks have been gathering momentum again recently. As energy prices surged this month, energy stocks have enjoyed strong gains. Rising prices for crude oil over the last 3 months have given a boost to some of the top energy stocks so far. This on top of investors being hopeful on the global vaccine rollouts would speed up the economic recovery this year. This can be seen in how countries like the UK have vaccinated the most vulnerable sections of their population so quickly. 

What To Look For In Top Energy Stocks?

I believe that energy demands will no doubt increase as economies reopen and businesses restart. These energy stocks will also be on the rise in line with this demand increase. With over 7.8 billion people living on Earth and this number is expected to grow for the decades to come, it is feasible to say that energy demands will continue increasing to facilitate this growing population.

Energy will always be needed to power up homes and businesses. Even our everyday devices and gadgets require energy, so you can see how much energy is required. With energy stocks like ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX) rising steadily since the start of February, things do begin to look optimistic. With that in mind, here is a list of top energy stocks to consider buying this week.

Top Energy Stocks To Buy [Or Sell] This Week

SolarEdge Technologies Inc.

SolarEdge is a leader in intelligent inverter solutions. Its technology changes how energy is harvested and managed in a solar photovoltaic (PV) system. The company’s optimized inverter system maximizes power generation at the individual PV module-level while lowering the cost of energy produced by the entire solar PV system. The company is based in Israel and has offices all over the world. SEDG stock has been up by over 200% in the last year. Last week, SolarEdge announced its fourth-quarter earnings and full-year 2020 fiscals. Here’s how they did.

Based on its fourth-quarter the company reported a revenue of $358.1 million, a 6% increase from the previous quarter. A substantial portion of this revenue ($327.1 million) is coming from its solar products. This beat Wall Street estimates by $2.65 million. On top of that, it reported a net income of net diluted earnings per share of $0.33 for the quarter.

Source: TD Ameritrade TOS

“Our fourth quarter results are reflective of strength in the U.S. residential market and record revenues from outside of Europe and the U.S., led by Australia,” stated Zvi Lando, CEO of SolarEdge. He continued with, “The return to growth in installations in the U.S. residential market drove our sequential growth and return to the anticipated solar margins. Despite the global pandemic, we concluded the year with slight growth in revenues, healthy cash generation and are well positioned for 2021 and beyond.” With solid financials, will you consider buying SEDG stock?

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Occidental Petroleum Corporation

Occidental is an international energy company with operations in the U.S., Middle East, Africa, and Latin America. In detail, it is one of the largest oil producers in the U.S. Its midstream and marketing segment provides flow assurance and maximizes the value of its oil and gas. The company also has a chemical subsidiary called OxyChem and manufactures the building blocks for life-enhancing products. OXY stock is currently trading at $24.52 as of Friday’s close and is up by over 45% year-to-date. Also, the company will announce its fourth-quarter financials this week, Tuesday, February 23rd at 1 pm EST. This was a reschedule due to the impacts of the severe winter storms happening in the U.S.

In the company’s third-quarter financials, Occidental exceeded its global production guidance and continued to deliver operational excellence. For the quarter, it had a production capacity of 1,237 thousand barrels of crude oil equivalent per day from continuing operations. Despite posting a net loss for the quarter due to the pandemic, it managed to improve its operating cash flow for the quarter.

Source: TD Ameritrade TOS

Occidental has also achieved its highest quarterly free cash flow since 2011, driven by a strong performance of its business. All things considered, will you add OXY stock to your portfolio?

[Read More] 4 Top Industrial Stocks To Watch In February

SunPower Corporation

SunPower is an energy company that designs and manufactures PV cells and solar panels. It delivers one of the highest efficiency and reliability solar panels and systems that are available in the market today. Its share price has risen by over 650% in the last year alone and currently trades at $37.76 as of Friday’s close. SPWR stock dropped from trading in the $50 dollar range after the company reported its fourth-quarter financials last week Wednesday.

SunPower reported quarterly highlights such as a 65% increase in commercial and industrial installations compared to the previous quarter. However, if you take a deeper look you’ll see the company reported a 15% decreases in revenue year-over-year (YoY). On top of that, SPWR stock also saw a 40% drop in earnings per share YoY. Being that there such strong expectations surrounding SunPower due to its bullish share price movement in the last year, it’s no surprise that investors may have been disappointed with the results. They also narrowed their revenue guidance for 2021 anticipating growth of 35% after previously estimating between 30% and 50%.

Source: TD Ameritrade TOS

Furthermore, in late January, the company expanded its SunPower Residential Installation (SPRI) program to six states. In detail, SPRI will enable local companies and entrepreneurs to create or expand their solar energy companies without the complex and asset-heavy roles often associated with a traditional solar dealer business. It will allow sales organizations and small businesses to focus on marketing and selling solar while SunPower manages the entire process of rooftop installation and maintenance. It essentially lowers the barrier-to-entry for companies that want to enter the fast-growing renewable energy sector. This could likely expand SunPower’s customer base as organizations that work with SPRI are part of its Non-Installing Dealer network. Given the recent drop in share price and an optimistic outlook for renewable energy stocks, would you consider buying SPWR stock?

By Joe Samuel

Joe Samuel is a dedicated stock market researcher and financial contributor. His love for the stock market started at a young age learning from his grandfather. Joe earned a bachelor of science degree in corporate finance and business management. After finishing college, he went the route of an entrepreneur starting numerous businesses and eventually became a financial contributor to a number of outlets including Seeking Alpha, Invesitng.com, and actively contributes to FactSet. At StockMarket.com, Joe looks for emerging stories. One of his traits is identifying new trends before they become mainstream. Whether it’s a biopharmaceutical company debuting a novel treatment or the next technology start-up developing a new platform, Joe looks to be on the cutting edge of that trend.

After years of living in New York, he made the move to Miami, Florida where he’s become an active member of the finance community. Joe has worked with early-stage companies in marketing and consulting capacities, which has given him an opportunity to see what makes companies tick. His viewpoint is that while corporate news is vital to any investment, it’s what isn’t “right in front of you” that can make a good investment great. His approach to the markets is one that aims to deliver information that might not be well-known. But through deep research and diligence, Joe has written about and been able to uncover time-sensitive information when seconds matter in the stock market today.

Joe enjoys covering several stock market sectors. These include commodities, finance, biotechnology, and technology; specifically AI & machine learning. His no-nonsense approach to the market gives readers a cut and dry view of the news that matters most and topics beginning to emerge as new trends in the stock market. He was early to the table with calls on things like the last gold rush in 2019 and has been able to identify influential events and how they could impact certain industries.

During his free time, he enjoys spending time with his family and polishing up one new stock market trends. He’s also an avid car enthusiast with a passion for classic and muscle cars.

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