Should Investors Add Clean Energy Stocks Into Their Portfolio Now?

While most stocks are having rough times in the stock market, there are always some that are making gains. With clean energy stocks, there’s a lot of potential to bring big returns to investors. The need for cleaner energy has been clear for several decades now, but only recently have political and economic actions begun to take shape. Surely, the transition towards a cleaner future will take trillions of dollars and many decades to complete. 

Of course, we all know that President Biden is proposing as much as $2 trillion in infrastructure spending in the coming decade. This massive investment is providing all the necessary backings to support the green initiative. For investors, an investment of this scale only means that top clean energy stocks would eventually benefit. The good news is, investors can get in on the action in a number of ways.

Whether you’re talking about solar energy stocks or other clean energy stocks, there are many to keep your eyes on in the stock market today. The biggest question at hand is, which clean energy stocks are worth watching right now?

Top Clean Energy Stocks To Watch Right Now

  1. Enphase Energy (NASDAQ: ENPH)
  2. Brookfield Renewable Partners (NYSE: BEP)
  3. NextEra Energy (NYSE: NEE)
  4. SolarEdge Technologies (NASDAQ: SEDG)
  5. Bloom Energy (NYSE: BE)

Enphase Energy

First up, we have the global energy technology company, Enphase Energy. The company is the world’s leading supplier of micro inverter-based solar-plus-storage systems. The company recently announced its stock buyback program to repurchase up to $500M of shares. As a result, ENPH stock has soared more than 10% since the start of the week. With President Joe Biden putting emphasis on a transition towards cleaner energy sources, this could benefit the company in the long run. After all, such sentiments may partly explain why the stock doubled in value over the past year.  

clean energy stocks (ENPH stock)
Source: TD Ameritrade TOS

Now, surely the biggest question now is whether the company could sustain this growth moving forward. One thing is certain, the company is not resting on its laurels. This year, Enphase announced an expanded collaboration with Palomar Solar, a leading solar energy installation company. Palomar has also integrated Enphase Storage with its full suite of services.

On top of that, Enphase also announced its first-quarter 2021 financial figures. In it, revenue came in nearly 47% higher year-over-year to $301.8 million. With its potential for further growth, would now be a good time to bet on ENPH stock?

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Brookfield Renewable Partners

Brookfield Renewable (BEP) is a renewable energy company that owns and operates renewable power assets. It also operates one of the world’s largest publicly traded renewable power platforms. Brookfield Renewable stock has risen steadily over the years, reflecting the company’s consistent performance. From the company’s first-quarter financials, revenue came in 2.9% lower to $1.02 billion.

top clean energy stocks to watch (BEP stock)
Source: TD Ameritrade TOS

With its growing scale and operating expertise, BEP is well-positioned to capitalize on secular trends in the industry. The tailwinds for renewables are accelerating as governments and businesses around the world intensify their focus on decarbonization. And this bodes well for BEP stock.

To add, the company focuses its portfolio on wind and solar, some of the most cost-effective sources of bulk power generation. This would also be advantageous for the company in the years to come. Apart from being one of the top clean energy stocks, BEP stock also generates a decent dividend yield of 2.59%. Considering that, would you add BEP stock to your watchlist?

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NextEra Energy

NextEra is a leading clean energy company headquartered in Florida. The company owns Florida Power & Light Company, which is the largest rate-regulated electric utility in the U.S. It also owns a competitive energy subsidiary, NextEra Energy Resources, which is the world’s largest producer of solar and wind energy today.  NEE stock has been trading sideways since the start of the year. However, this could be a buying opportunity for investors who believe in the long-term potential of clean energy. 

best clean energy stocks to buy (NEE stock)
Source: TD Ameritrade TOS

NextEra Energy Resources is one of the company’s divisions that provides long-term, contract-based renewable power to others. The company claims it is the largest generator of solar and wind power in the world. This Florida utility is very much leading the charge in renewables and should be a major growth engine for years to come.

On top of that, the company along with OPAL Fuels announced plans to build Minnesota’s first renewable natural gas facility. In particular, NextEra will work with OPAL to replace the existing power generating facility with a new production facility. This could produce over 6 million gas gallon equivalents of renewable natural gas per year. With these developments, would you consider investing in NEE stock now?

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SolarEdge Technologies

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’s stock price took a dive after reporting its first-quarter results, in which revenue fell 6% from the year-ago period to $405.5 million.

best clean energy stocks to buy now (SEDG stock)
Source: TD Ameritrade TOS

Despite the setbacks in the North American markets, the company’s well-diversified presence in the global market helped grow its volume in the first quarter. Two-thirds of the company’s shipments are to international markets, mainly Europe.

More importantly, the company is on track to launch its residential battery this quarter. In addition to residential solar, SolarEdge is also expanding its offerings in the commercial and utility segments to fuel growth. If anything, the recent dip in SEDG stock could allow long-term investors to accumulate the stock at discounts. 

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Bloom Energy

Bloom Energy is one energy stock worth taking a closer look at. Since its inception, the fuel cell company has been selling auxiliary power to large commercial buildings. Sure, the business has been enjoying good growth and operating costs have also been declining steadily. But we all know this won’t disrupt the energy industry no matter how we put it.

clean energy stocks to buy now (BE stock)
Source: TD Ameritrade TOS

It’s worth mentioning that the company recently announced that it’s partnering with the U.S. Department of Energy’s Idaho National Laboratory (INL) “to independently test the use of nuclear energy to create clean hydrogen through Bloom Energy’s solid oxide, high-temperature electrolyzer.

Should the company be successful in harnessing electricity from a nuclear plant, it will make nuclear power an even more attractive proposition than it already is. Even if this experiment doesn’t turn out to be fruitful, Bloom Energy is still well-positioned to be the beneficiary from the growth within the hydrogen niche for years to come. With that being said, is BE stock one of the best green hydrogen stocks to buy and hold this week?

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