3 Trending Clean Energy Stocks To Watch Today
Clean energy stocks are among the more recent sectors gaining traction in the stock market now. In this group of stocks lies a growing list of companies whose services contribute to the fight against climate change. By and large, this includes solar, hydrogen, and wind energy firms among other renewable energy sources. All of which offer consumers and organizations alike more sustainable energy solutions across the board. In fact, the International Energy Association (IEA) estimates that 2021 could be a record year for renewable power installations. This was mentioned in its Renewables Market Report posted earlier today. In the long run, the IEA also sees global renewable electricity capacities soaring to over 4,800 gigawatts by 2026, a sizable 60% increase from 2020 levels.
At the same time, there are plenty of companies making moves in the broader clean energy space as well. Namely, we could look at the electric vehicle (EV) industry now. As governments across the globe look to reduce their overall carbon emissions, EVs are becoming a go-to. Speaking of EVs, some of the biggest names in the Chinese EV industry posted their November delivery figures today. Among the ones to note now would be Nio (NYSE: NIO). In brief, the company delivered 10,878 vehicles throughout November. This marks a whopping 105.6% year-over-year increase. In terms of year-to-date deliveries, Nio is looking at a year-over-year jump of over 120%.
Not to mention, even conventional energy giants such as Royal Dutch Shell (NYSE: RDS.A) are getting in on the action. Just this week, it announced a partnership with Nio to expand its battery swapping operations in China and Europe through 2025. Overall, there appears to be plenty of activity in the clean energy world now. Could that make these clean energy stocks top picks in the stock market today?
Top Clean Energy Stocks To Buy [Or Sell] This Week
Enphase Energy Inc.
Starting us off today is Enphase Energy. In essence, the company primarily focuses on providing solar energy-focused solutions to consumers. It accomplishes this via a portfolio of micro inverter-based home energy grid services and related system monitoring offerings. Moreover, Enphase is the world’s leading supplier of such solar home systems. All of which can be controlled via the company’s proprietary smartphone app. To date, Enphase has reportedly shipped over 39 million microinverters and over 1.7 million of its systems. For a sense of scale, this is to customers across over 130 countries worldwide.
Now, given Enphase’s immense presence in the consumer-focused solar energy market, investors could be eyeing ENPH stock. Evidently, the company’s shares are already sitting on gains of over 75% in the past six months. Once you factor in the current strength in consumer markets and global green initiatives, this is understandable. Some would argue that a hard pivot towards clean energy tech is inevitable as climate change worsens over time. As such, investors could be looking to get a slice of the Enphase pie before then.
Industry tailwinds aside, Enphase seems to be going from strength to strength on the operational front as well. Earlier this week, news broke of its Enphase Energy Tech being a go-to for the Australian government. To highlight, CCO Dave Ranhoff said, “Our distributed and all-AC architecture combined with panel-level monitoring means there is no doubt that Enphase micro inverter-based solar systems are smart and safer choices for solar assets installed on commercial facilities.” In light of Enphase’s current momentum, would you consider ENPH stock a buy?
Following that, we will be taking a look at Xpeng. In short, Xpeng is a Chinese EV manufacturer that is based in Guangzhou, China. As you can imagine, the company specializes in designing, developing, manufacturing, and marketing EVs. The likes of which are catered to a “large and growing base of tech-savvy middle-class consumers” according to Xpeng. To help optimize its customers’ experiences, the company boasts a wide array of features in its vehicles. This includes full-stack autonomous driving tech and an in-car intelligent operating system to name a few.
All in all, XPEV stock seems to be gaining momentum in the stock market. Over the past month, the company’s shares are currently up by over 14%. Thanks to its latest announcement earlier today, I could see this trend persisting. Notably, Xpeng announced its vehicle delivery results for November. In detail, the company delivered 15,613 vehicles throughout the month. This adds up to a massive 270% year-over-year increase. Also, Xpeng’s P7 smart sports sedan appears to be gaining in popularity seeing as its November sales soared 187% year-over-year.
Furthermore, the company also highlights that these impressive results are in line with its delivery targets. Considering that global supply chain issues persist, this is a win for Xpeng. Given all of this, will you be adding XPEV stock to your portfolio anytime soon?
First Solar Inc.
Last but not least, we have First Solar, a manufacturer of solar panels and provider of utility-scale photovoltaic (PV) power plants. In fact, the company is a leading solar technology company and global provider of sustainably produced eco-efficient solar modules. Its advanced thin-film PV modules represent next-generation solar technologies. Furthermore, they provide a competitive, high-performance alternative to conventional crystalline silicon PV panels.
On November 22, 2021, the company announced that global solar leader Lightsource bp and integrated energy company bp have placed multi-year orders for First Solar’s advanced PV solar modules. The multi-year agreement will see up to 5.4 gigawatts of solar modules. This would be the largest framework agreement in the company’s history, and its modules will be scheduled for delivery between 2023 and 2025 to support the companies’ solar development pipelines in the U.S. Under the agreement, First Solar has firm orders for 1.55GWDC of modules in 2023, 1.3GWDC in 2024, and 1.55GWDC in 2025.
Last month, the company also announced its third-quarter financials. Diving in, it reported net sales of $584 million. First Solar also posted a net income per diluted share of $0.42 and ended the quarter with $1.9 billion in cash and cash equivalents. Besides, the company reported a third-quarter production of 2-gigawatt DC despite the challenging freight and COVID-19 environment. Also, it maintains its 2021 EPS guidance of $4.00 to $4.60. All things considered, is FSLR stock worth investing in right now?