Looking For The Best Renewable Energy Stocks To Buy? Here’s 3 For Your List
Renewable energy stocks have undoubtedly outperformed most of the stock market this year. This is thanks to several key factors. The most obvious one would be the tailwinds created by a Biden administration in the White House. In his manifesto, the president-elect made it clear that he will be supporting the renewable energy industry to the tune of $40 billion in investments annually. Second, climate change shows no signs of slowing, which further intensifies the need for development and innovation in the renewable energy field. Third, the most recent development for the industry is the $900 billion U.S. stimulus package. Of this amount, $11 billion in funding will be allocated to the development of renewable energy technology. Given all of this, it would not be a stretch to say that 2021 is looking to be another massive year for top renewable energy stocks.
Some of the best renewable energy stocks to buy now have already outpaced the broader market this year. For example, Enphase Energy (ENPH Stock Report) and JinkoSolar (JKS Stock Report) have seen gains upwards of 400% since the March lows. Recall that we saw renewable energy stocks surge from the news of Biden’s win back in November. With inauguration day coming in less than a month, it would not surprise me if the renewable energy industry sees massive rallies again as we approach January 20.
For most investors, the renewable energy sector may appear to be full of long-term growth stocks. Given all of the tailwinds mentioned earlier, I don’t blame them for thinking so. I also believe that with proper research and due diligence, savvy investors could reap the benefits from investing in renewable energy stocks. In light of that, let us dive into this list of top renewable energy stocks to watch in the stock market today.
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Top Renewable Energy Stocks To Buy [Or Sell]: ReneSola Ltd.
Right off the bat, we have ReneSola (SOL Stock Report). As of yesterday’s closing bell, SOL stocks hit a new all-time high. However, the stock has taken a breather this morning, falling 12% during Tuesday’s trading session. Nevertheless, it is still up by over 680% year-to-date. Behind these impressive numbers lies a leading global solar project developer and operator. The company focuses on solar power project development, construction, and project financing. Seemingly, its portfolio is fit to tackle the rise of renewable energy in 2021, so let’s take a closer look.
In its recent quarter fiscal posted in December, the company reported some interesting figures. It managed to bring in $9.7 million in total revenue despite less than favorable project sales timing. On the bright side, it saw a 66% rise in cash on hand year-over-year. In terms of business highlights, CEO Yumin Liu said, “Business momentum has accelerated over the past several months. Most notably, we formed multiple joint ventures in Europe to expand our reach. The combined strengths of these joint ventures will create significant synergy and provide new opportunities to grow our global pipeline in the quarters ahead.” Taking this into consideration, SOL stock investors appear to be banking on long-term growth here.
Admittedly, the company has been busy over its recent quarter and shows no signs of slowing even now. Last week, ReneSola was awarded 38 solar utility projects in Poland. Besides, it also entered into an agreement to sell two ground-mounted solar parks in Romania. Both of these developments point towards the company’s intentions to further diversify its solar portfolio. By and large, ReneSola seems to be stepping up to meet growing energy demand globally. Do you think this bodes well for SOL stock in 2021?
Top Renewable Energy Stocks To Buy [Or Sell]: SolarEdge Technologies Inc
Our next entry is SolarEdge (SEDG Stock Report). The company is a provider of power optimizers, solar inverters, and monitoring systems for photovoltaic arrays. In short, its offerings serve to maximize the energy output of a given system. Understandably, this is an excellent business to be in considering the growing energy needs of the world. Investors will be delighted to see that this has reflected in SEDG stock which is up by over 320% since March.
In terms of financials, the company appears to have mostly recovered from the impacts of the coronavirus pandemic. The company reported total revenue of $338 million in its recent quarter fiscal last month. It also saw a 323% rise in cash on hand which adds up to a cool $1.05 billion. CEO Zvi Lando had this to say, “Our third-quarter results reflect significant growth in Europe … Our solar business outside the U.S. reached an all-time high and the U.S. market is showing signs of a return to pre-pandemic installation levels.” He also mentioned that the company’s e-mobility sector is gearing up for a busy fourth quarter ahead. It seems that SolarEdge is kicking into high gear as we move into 2021. Should the company be able to deliver on its several fronts, investors could be in for a treat.
Aside from that, the company also announced the appointment of a new Chief Marketing Officer. Yogev Barak brings over twenty-five years of experience in international marketing and product management. Impressively, he has held executive management positions at HP (HPQ Stock Report) and Applied Materials (AMAT Stock Report). With the addition of Barak, SolarEdge could be looking to bolster its marketing section too. With all this in mind, will you be adding SEDG stock to your January watchlist?
Last but definitely not least, we will be looking at Blink (BLNK Stock Report). Few can boast the same gains as BLNK stock this year. If you have any in mind, they would have to beat BLNK’s year-to-date gains of over 2000%. In brief, the company is a leading owner, operator, and provider of electric vehicle (EV) charging equipment and services. Despite its fantastic performance so far, Blink appears to be keeping up its momentum.
Just last week, the company signed an exclusive seven-year agreement with Lehigh Valley Health Network (LVHN). The deal entails Blink owning and operating charging stations across LVHN’s locations. In terms of numbers, this adds up to hundreds of EV chargers across the U.S. COO Brendan Jones said, “As the EV boom continues, Blink is leveraging our relationships, such as this one with Lehigh Valley Health Network, to identify host locations that recognize the need for EV charging infrastructure as consumer demand increases. We appreciate these long-term, exclusive contracts as they allow us and the host location to add charging stations as warranted by demand.” Additionally, the deal comes with the possibility of two 7-year extensions. This could be a vital early step for the company as it seeks to raise its long-term growth potential.
It can be easy to overlook the fact that Blink is still a small company, especially with such explosive growth. In its recent quarter fiscal, the company reported earnings of $905,000 which translated to an 18% year-over-year increase. Notably, Blink also ended the quarter with $14.86 million in cash on hand. With funds like that at its disposal, Blink appears to be in a prime position to facilitate rising EV trends. Does this mean that BLNK stock has room to grow moving forward? I’ll let you decide.