Governments across the globe are investing billions of dollars into the renewables industry to decrease their carbon footprint as concerns about global warming and climate change grow. According to BloombergNEF, over $755 billion was spent globally in the energy industry, with $366 billion going to renewables, up 6.5% from 2020.
According to Renewable Energy Market Outlook, the worldwide renewable energy industry was valued at $881.7 billion in 2020 and is expected to reach $1.97 trillion by 2030, increasing at a CAGR (Compound Annual Growth Rate) of 8.4% from 2021 to 2030. The renewable energy business is expanding, and renewable energy stocks are predicted to skyrocket over the next decade, making them an appealing investment for both average investors and top hedge fund managers.
The invasion of Ukraine by Russia has accelerated the rise of renewable stocks. When Russia initiated its invasion of Ukraine on February 24th, 2022, numerous renewable energy stocks soared and have continued to rise since then. It’s clear that sanctions on Russian oil and gas, in combination with global climate change commitments, are propelling the expansion of renewable energy equities.
That being said, let’s have a glimpse at three renewable energy stocks that – during these uncertain times – analysts consider to be wise additions to our portfolios:
Bloom Energy Corp (BE)
Bloom Energy Corp. (BE) is a company that manufactures and installs distributed power generators on-site. Bloom’s Energy Server is a device that uses an electrochemical technique to convert low-pressure natural gas or biogas into energy without using combustion. K. R. Sridhar, John Finn, Jim McElroy, Matthias Gottmann, and Dien Nguyen started BE on January 18th, 2001, based in San Jose, California.
BE announced sales of $342.47 million for the fiscal fourth quarter of 2021, up 37.33% year-over-year, and surpassed market estimations by $33.53 million. BE has risen 45.12% in the last six months and has a market value of $4.35 billion as of April 3rd of this year. For its current quarter, BE shows $217.7 million in sales. BE shows healthy revenue growth of 37.33% year-over-year with a net profit margin growth of 10.57%. The forecasts for both EPS and revenue look positive. BE has a consensus price target of 28.00 among the analysts that provide 12-month price estimates, with a high of 36.00 and a low of 20.00. The median estimate is up 25.11% from its most recent price, and the consensus is to buy stock in BE.
Solaredge Technologies Inc (SEDG)
SolarEdge Technologies, Inc. (SEDG) is a company that develops energy technologies and sells inverter systems. Inverter solutions geared to maximize power generation are planned, designed, manufactured, and sold in SEDG’s Solar market. UPS products, energy storage goods, e-Mobility products, and automated machines are part of SEDG’s other unique services. Photovoltaic inverters, power optimizers, photovoltaic monitoring, software tools, and electric car chargers are also among SEDG’s goods and services. Guy Sella, Lior Handelsman, Yoav Galin, Meir Adest, and Amir Fishelov formed the firm in 2006, and it is based in Herzliya, Israel.
SEDG announced $551.92 million in sales for the fiscal fourth quarter of 2021 on February 15th, above market expectations by $1.96 million. SEDG has a market value of $17.79 billion as of April 3rd, up 26.47% in the last six months. SEDG’s most recent EPS beat was by 14.18%, and its year-over-year numbers show robust growth. Particularly, SEDG currently shows impressive year-over-year revenue growth of 54.12% and EPS growth of 124.24%. SEDG shows $635.9 million in sales for the current quarter, at 92 cents per share. SEDG has a consensus price target of 354.50 among analysts that provide 12-month price estimates, with a high of 439.00 and a low of 67.00. The consensus estimate implies an increase of 17.56% over current pricing, and the consensus also gives SEDG a sturdy buy rating that’s earned consideration.
Plug Power Inc (PLUG)
Plug Power, Inc. (PLUG) is an alternative energy company specializing in the design, development, marketing, and manufacturing of hydrogen and fuel cell systems for the material handling and stationary power industries. PLUG’s fuel cell system solution is meant to replace lead-acid batteries in the electric material handling of vehicles and industrial trucks for some distribution and manufacturing firms. George C. McNamee and Larry G. Garberding created PLUG on June 27th, 1997, based in Latham, NY.
PLUG announced recently that McDermott International Ltd., an energy engineering solutions provider, will “construct two 500,000-gallon double-wall liquid hydrogen spheres” for PLUG’s hydrogen production plant in New York. The plant is anticipated to create 45 metric tons of green liquid hydrogen per day, which will make PLUG North America’s largest green hydrogen plant. Despite mixed results regarding quarterly earnings reports, PLUG shows robust year-over-year growth, mainly revenue and EPS growth of 152.38% and 71.05%, respectively. Until reporting again, PLUG offers $148.5 million in sales, and annual, and quarterly growth forecasts are optimistic. PLUG has a consensus price target of 38.00 among the analysts that provide 12-month price estimates, with a high of 78.00 and a low of 21.00. The consensus estimate is up 46.60% from its most recent price, and PLUG has earned a consensus buy rating that shouldn’t be overlooked.
