Will These Top Renewable Energy Stocks Flourish In 2021?
Renewable energy stocks have had an amazing year in the stock market so far. This was expected as the latest global recession had essentially flipped the energy industry upside down. Global energy demands fell drastically with lockdowns implemented worldwide. Traditional energy players like Shell (RDS.A Stock Report) and ExxonMobil (XOM Stock Report) have had their valuations decimated by the coronavirus pandemic since the start of the year. Today, these industry titans are still struggling to recover their market corrections. Some believe that these industries may never recover to their former peak. Why is that, you may ask?
Are Investors Betting On The Future Of The Renewable Energy Industry?
The reason is that top renewable energy stocks have uprooted these energy industry veterans. The rising use of renewable energy is an indisputable trend that seems to be gaining momentum. With more people realizing the implications of climate change, the adoption of renewables has accelerated at an unprecedented speed. Some of the best renewable energy stocks have also become popular among investors. Environmental concerns and the growth potential of these renewable energy stocks are also driving factors for investors.
In 2019, around 11% of global primary energy came from renewable technologies. This figure will likely grow over the next few decades. Could this be the right time to invest in top renewable energy stocks to watch? Furthermore, with Joe Biden set to become the 45th President of the United States, this could be the beginning of a prosperous era for the renewable energy industry. This is because the president-elect has run on a progressive platform to make the U.S. carbon neutral by 2050. Of course, this would only be possible if the industry as a hold continues to push forward. With that in mind, here are 3 of the best renewable energy stocks to watch in the stock market today.
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Best Renewable Energy Stocks To Buy [Or Sell]: Plug Power Inc.
Plug Power (PLUG Stock Report) is a renewable energy company that develops hydrogen fuel cell systems. These fuel cells would replace conventional batteries in equipment and vehicles. The company is a provider of clean hydrogen and zero-emission fuel cell solutions that are cost-effective and reliable. Plug Power shares are up by over a staggering 600% year-to-date.
The company has just announced its third-quarter fiscal in November, much to investors’ delight. Plug Power posted a record quarter with gross billings of $125.6 million. This is a 106% increase compared to a year earlier. During the earnings presentation, management had also revised its 2020 gross billings to $328 million from $310 million. Plug Power also targets a 2021 gross billings of $450 million. The company also deployed a record 4,100 fuel cell systems and 13 hydrogen fuelling stations in its third quarter. This is a 130% increase year-over-year for fuel cell units deployed.
The company has also announced that it raised approximately $1 billion to accelerate the first nation-wide green hydrogen network. Plug Power announced its plans to build five regional green hydrogen facilities in the U.S. It plans to work with industry giants like Brookfield Renewable Partners (BEP Stock Report). These are certainly exciting times for the company. According to consultancy McKinsey & Company, the global hydrogen economy could reach $2.5 trillion by 2050, and Plug Power will be able to get the lion’s share as it is an industry leader today. With that in mind, will you consider adding PLUG stock into your portfolio?
Best Renewable Energy Stocks To Buy [Or Sell] Right Now: Enphase Energy
Next on this list is Enphase Energy (ENPH Stock Report). Enphase is a California based company that designs and manufactures software-driven home energy solutions. This includes solar generation, home energy storage, and web-based monitoring and control. Enphase stocks are up by over 400% year-to-date and are traded at $160.93 as of 2:51 p.m. EST.
In the company’s latest quarter financials reported in October, Enphase posted revenue of $178.5 million. This is a 42% increase compared to the previous quarter. The company also reported a 53.2% gross margin. Evidently, this is due to microinverter products rebounding strongly in this quarter. The company says that it experienced record sell-through from distribution to installers. In Enphase’s fourth-quarter financial outlook, the company expects revenue of $245 million to $260 million.
Recently, the company launched its Enphase Installer Network (EIN) in Australia. The EIN recognizes a network of trusted installers that deliver exceptional homeowner experiences using Enphase products. It is designed to help Enphase installers grow their business with a range of innovative digital tools and benefits. This will help the company expand its reach in Australia as installers will be able to deal directly with homeowners and small business owners. With such exciting development surrounding Enphase, is ENPH stock worth adding to your watchlist?
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Best Renewable Energy Stocks To Buy [Or Sell] Right Now: FuelCell Energy
FuelCell Energy (FCEL Stock Report) is a global leader in fuel cell technology. It utilizes its proprietary, state-of-the-art fuel cell platforms to enable a world empowered by clean energy. The company boasts over 50 plants worldwide. It also currently operates the world’s largest fuel-cell park, the Gyeonggi Green Energy facility in South Korea.
In the company’s third-quarter fiscal posted in September, the company reported a revenue of $18.7 million. Company CEO, Mr. Few has this to say about the industry “The hydrogen economy is currently enjoying unprecedented political and business momentum, and we are well-positioned to capitalize on opportunities consistent with our goals.” The company has invested heavily to advance its innovative technologies. This in turn will enable hydrogen-powered cars and trucks to cleanly operate globally on a larger scale. FuelCell Energy will also enable hydrogen to repower existing combustion engines to deliver zero-carbon power and extend the economic life of existing power generation assets.
The company’s share price has doubled in the last month alone. This is because the International Energy Agency (IEA) has just released a report which notes that almost 90% of new electricity production capacity in 2020 came from a renewable source. The IEA also estimates that by 2025, renewable energy will be the world’s largest source of electrical power. This could fuel the company’s growth for years to come. Will these reasons be enough for you to own FCEL stock?