Are These The Best Renewable Energy Stocks To Watch This Month?
Top renewable energy stocks have been surging throughout most of 2020. Rightfully so, it has been a whirlwind of a year for the industry as climate change shows no signs of slowing down. Moreover, another key happening to thank for the current rally in the stock market for renewable energy is the U.S. presidential elections. Chiefly, president-elect, Joe Biden has made big promises to fight against climate change. In detail, he has already announced plans to re-enlist the U.S. to the Paris climate agreement of 2015 in his first 100 days in office. Furthermore, the Biden manifesto includes plans of investing $400 billion in clean energy technologies over the next ten years. This, in turn, could mean huge developments for the industry.
Notably, the industry is already seeing massive rallies even before Biden’s inauguration day on January 20, 2021. For example, both Enphase Energy (ENPH Stock Report) and SunPower (SPWR Stock Report) share prices are up by over 300% year-to-date. Considering that these two companies focus on solar energy, there are also other notable forms of clean energy for investors to be aware of. These range from wind energy to hydro energy and numerous others. The real challenge here would be to discern which sub-sections of the industry are worth jumping into.
Having said that, both veteran and new investors are likely looking for good entry points into this budding industry. Amidst the different types of renewables and the complicated science behind them, which top renewable energy stocks to buy will reign supreme? Here is a top list of renewable energy stocks to watch right now.
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Top Renewable Energy Stocks To Watch Right Now: Renewable Energy Group Inc.
First, on this list, we have Renewable Energy Group (REGI Stock Report). REG is based in Iowa and has been around since 2006. It is an international producer of biomass-based diesel and a developer of renewable chemicals. Most notably, it is the largest producer of advanced biodiesel in North America. The company currently operates 13 biorefineries throughout the U.S. and Germany. REG’s share prices are currently seeing gains of over 240% since the stock market crash in March.
Admittedly, the company’s recent quarter fiscal posted in November paints a slightly different picture. Mainly, the company reported a 1.4% decrease in revenue year-over-year. All things considered, it has held its own in face of the onslaught of disruptions caused by the coronavirus pandemic. On the positive side, REG also reported a 51% year-over-year increase in cash on hand which is always a good thing. Regarding this, CEO Cynthia Warner says that the demand for low carbon fuels was resilient and that this “further demonstrates that the renewable fuel industry is at an inflection point driven by customer demand.” This could just be the beginning for REG as the renewable energy industry continues to grow.
Moving forward, Warner remains optimistic about the company’s future. She said, “Renewable Energy Group is positioned to lead and capitalize on this unique opportunity with strong ongoing production, and our focused downstream strategy to deliver value to our customers while expanding our margins. We are building upon this momentum with the planned Geismar expansion.” In brief, REG will be expanding the production capacity of its Geismar biorefinery to 340 million gallons annually. Despite the current coronavirus related headwinds for renewable fuel, REG appears to be preparing for a surge soon. Is all this enough to make REGI stock a top renewable energy stock to buy?
Top Renewable Energy Stocks To Watch Right Now: Clearway Energy Inc
Next up we have Clearway (CWEN.A Stock Report). Evidently, Clearway is having a great year so far. Its share prices are up by 30% in the past six months. It is one of the largest developers of clean energy in the U.S. with over 4.7 gigawatts of renewable energy storage in operation. Indeed, the company’s stock has also been a fantastic dividend stock throughout this year. Clearway has increased its payouts year over year for the first three quarters of this year.
In its recent quarter fiscal released in November, Clearway Energy reported a 12% increase in revenue year-over-year. Additionally, it also reports a 142% increase in cash on hand. To point out, the company has also been making several key investments throughout the last quarter. It will acquire all of the cash equity interests in the repowered Langford wind project for $64.3 million. Second, the company acquired Clearway Group’s residual interest in Distributed Generation Partnerships. This came along with a contract related to the monetization of renewable energy credits associated with assets within the partnerships for $43.5 million. In short, this means that Clearway Energy now receives all the cash distribution from this entity. Understandably, this explains the company’s positive outlook towards future dividend growth.
Clearway Energy appears to be on track as it recently sealed the deal on another huge investment. This agreement will see Clearway having a majority stake in the Agua Caliente solar project. This is projected to supply the company with an incremental $20 million of average annual cash available for distribution over the next five years. With all these big plays, can clearway energy stock earn a spot on your watchlist?
Top Renewable Energy Stocks To Watch Right Now: Hannon Armstrong Sustainable Infrastructure Capital Inc
Last but not least, we have Hannon Armstrong (HASI Stock Report). Hannon Armstrong is the first U.S. public company solely dedicated to investments in climate change solutions. Although it is an unconventional part of the industry, it brings plenty to the table. In general, Hannon Armstrong beats the competition when it comes to versatility in investing. Its flexible financing model allows the company to freely invest in renewable energy assets with the best returns. In essence, it is not tied down to any particular type of renewable energy. Together with its recent offering of a dividend, this could attract investors in droves.
Obviously, its current business model has caught the attention of investors as HASI stock is up by over 220% since the stock market slid in March. According to its recent quarter fiscal posted in November, the company is doing rather well so far. It reported a 40% year-over-year increase in revenue and a 115% gain in diluted earnings per share in the same period. The company also saw a 114% rise in operating income and a massive 373% jump in cash on hand year-over-year. These figures would likely continue to impress investors moving forward.
All things considered, Hannon Armstrong’s current success could just be in its early phases. The company’s success essentially relies on the growth of the renewable energy industry as a whole. With different types of energy taking the spotlight, the company’s investment flexibility could be a key factor in its success moving forward. Regardless, climate change is an ongoing issue that will continue to expand the renewable energy industry. This would translate to potential long-term growth for Hannon Armstrong. Coupled with a 2.5% dividend yield, do you think HASI stock is a top renewable energy stock to buy?