Are These The Top Renewable Energy Stocks To Watch? 3 To Consider
Renewable energy stocks have been rising stars on the stock market. With all that is going on with the world, it is not hard to see why. Growing climate change concerns paired with the current political environment in the U.S. are among the key factors to consider. The earlier is an issue which the entire world has been working on over the last few years. Making the shift from conventional non-renewable energy and fuel sources is going to take a whole lot of work.
With that, comes the renewable energy sector to save the day. If that wasn’t enough to attract investors in droves, there is the fact that the U.S. Senate is now blue. If anything, this would make it easier for Joe Biden to carry out his net-zero emission agenda for the U.S. All in all, top renewable energy stocks could be looking at growth in the foreseeable future.
Whether it is clean energy fuel cells or solar-powered electricity grids, the best renewable energy stocks have seen massive gains. Look at Enphase (NASDAQ: ENPH) for example. Impressively, the solar energy giant is looking at gains of over 570% in the past year. With growing energy demands and the need for the transition to renewable energy sources, solar energy sells. Another growing sub-section of the sector would be clean energy fuel sources. You only need to look at the likes of electric vehicle battery manufacturer QuantumScape (NYSE: QS) to see how attractive this can be. Certainly, the automotive industry is going through the same shift in paradigm as the energy industry.
Regardless, the renewable energy sector appears to have a long growth runway ahead. Given the incoming tailwinds we’ve talked about, do you have a list of top renewable energy stocks to watch in the stock market today?
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Best Renewable Energy Stocks To Buy [Or Avoid] Right Now
- Ballard Power Systems Inc. (NASDAQ: BLDP)
- Plug Power Inc. (NASDAQ: PLUG)
- Sunworks Inc. (NASDAQ: SUNW)
Ballard Power Systems Inc.
Ballard is a developer and manufacturer of proton exchange membrane fuel cells. To explain, its products are made for the heavy-duty motive, portable power, and engineering services market. Understandably, as governments seek to make the jump to sustainable fuel sources, Ballard would come to mind. This seems to reflect in BLDP stock performance as well. It has skyrocketed by over 250% in the past year. More recently, it surged over 18% during Tuesday’s trading session. That’s in part thanks to the announcement of its latest deal.
On January 12, Ballard announced that it received orders for its hydrogen fuel cells from Arcola Energy. This is important as Arcola is a leading U.K. hydrogen and fuel cell integration company. It has also been tasked to deliver Scotland’s first hydrogen-powered train. Chief Commercial Officer Rob Campbell said, “Ballard is delighted to work with Arcola and other consortium members on the development of Scotland’s first fuel cell-powered train. This project is an example of the growing global interest in fuel cells for the Medium- and Heavy-Duty Motive market, including rail applications, where heavy payload, long-range, and rapid refueling are key customer requirements.” This is fantastic news for BLDP stockholders as Ballard will be the literal fuel to make this groundbreaking project a reality.
In its third-quarter fiscal, the company reported total revenue of $25.62 million. Adding to that, it ended the quarter with $361.75 million in cash on hand which reflected a 135% year-over-year jump. If all goes well, Ballard’s latest play could be a take-off point for the emerging company. In that case, could you see BLDP stock following suit?
Plug Power Inc.
Another rising fuel cell player to watch would be Plug. For some context, the company focuses on the development of hydrogen fuel cell systems. Similar to our previous entry, its products seek to replace conventional batteries used in vehicles. Important to note, PLUG stock has been on a tear lately with gains of over 100% since the start of 2021. In fact, it saw gains upwards of 22% yesterday, after news of its joint venture (JV).
In summary, Plug has teamed up with auto-manufacturer Groupe Renault to launch a 50-50 JV to be based in France. The JV is slated to be established by the first half of 2021. Moreover, it is targeting over 30% of the market share for fuel cell-powered light commercial vehicles (LCVs) in Europe. Plug CEO Andy Marsh said, “Plug Power prides itself on being at the leading edge of innovation in the hydrogen fuel cell industry, which is why we are thrilled to partner with Groupe Renault to become a leader of market fuel cell heavy vans in Europe. We look forward to working with our new partners to combine our technology with their decades-long experience leading the European automotive market.” It seems that Plug has entered a powerful alliance and has its eyes set on the European market. This does explain why PLUG stock has been in the limelight lately.
Upon closer inspection, Plug has also been doing well on the financial front. It saw green across the board in its recent quarter fiscal posted in November. This was evident as it reported year-over-year jumps of 79% in total revenue and 935% in cash on hand. With solid financials and massive ambitions, do you think PLUG stock will see new highs moving forward?
Third, we have solar energy company Sunworks. It is a leading provider of high-performance solar power systems. For one thing, providing solar power systems amidst growing energy demands puts Sunworks in a good position at the moment. Accordingly, SUNW stock is up by over 45% since this week’s opening bell as well. Investors may be curious as to what caused this.
A key event that happened this week would be the naming of Sunwork’s new CEO, Gaylon Morris. Morris brings two decades of experience in the fields of large-scale engineering and construction to the table.
Board chairman Chuck Cargile said, “The Board believes Gaylon is the ideal CEO to lead Sunworks through its next growth phase.” Morris added, “Sunworks is well-positioned with its backlog, cash balance, and rapidly expanding target market as homeowners, residential developers, commercial businesses, and municipalities consider solutions to maximize energy savings while leveraging enhanced renewable incentives. I am excited to join the Sunworks Executive Team and Board of Directors and believe we will reposition the company to capitalize on strong industry tailwinds while driving profitable, long-term growth.” With Morris taking the helm, I can see why investors are excited to see what the future holds for SUNW stock.
In its recent quarter fiscal reported in November, the company reported $7.3 million in total revenue. The company also ended the quarter with over $4.6 million in cash on hand. Admittedly, it was short on cash before raising $34 million in two stock offerings in December. In addition, the company’s supply chain and labor issues have mostly been resolved. Time will tell if SUNW can maintain its current momentum.