Clean Energy Companies Set to Outperform Given Recent Policy Updates
It’s fair to say that renewable energy stocks offer one of the most intriguing bull cases on the market at this time. These companies are helping to combat the impacts of climate change and government leaders around the world have been quite vocal about their support for spending big on renewable energy sources. President Biden has even unveiled a plan to invest $555 billion in order to cut carbon emissions by offering incentives like tax credits that will encourage more people and businesses to explore using green energy going forward.
Significant capital is pouring into different clean energy stocks at this time, which tells us that investors are certainly in favor of adding exposure to the top companies in the industry. This is a trend that should deliver plenty of outperformance for investors over the long term, especially thanks to the recent policy updates. The brightest businesses in the industry are set to flourish in the coming years, and it’s easy to support companies with products and services that are helping to make the world a better place.
Here are 3 clean energy stocks with clear upside to consider buying now:
NextEra Energy Partners (NYSE:NEP)
This is a limited partnership formed by
NextEra Energy that offers exposure to wind and solar projects along with natural gas infrastructure assets in Texas and Pennsylvania. With a strong portfolio of clean, contracted renewable energy assets and a mission to continue acquiring these types of projects, NextEra Energy Partners is certainly a strong pick in the sector. It’s also a great dividend stock to consider, as it offers investors an attractive 3.25% dividend yield.
Recently, the company announced that it has agreed to buy a 50% stake in a renewables portfolio including approximately 2,520 megawatts of newly constructed or in-construction renewables projects and 115 megawatts of integrated battery storage. The deal adds three new states to NextEra Energy Partners’ portfolio, which is a big plus for investors to consider. The stock is currently consolidating around its all-time highs and could be gearing up for another rally, so keep a close eye on this renewable energy stock in the coming sessions.
Electric vehicles are another intriguing way to play the rise of clean energy, especially since the industry is still in its early innings in terms of growth. Lucid Group stands out as a company with a strong opportunity to capture market share in the EV space, although it still has a long road towards attaining profitability. The company’s zero-emission battery-electric vehicles stand out as they reportedly offer up to 1,111 horsepower and a range of roughly 500 miles per charge. Lucid is clearly gunning for market share from Tesla, and the CEO is actually the former Tesla Model S lead engineer.
The Lucid Air, which is the company’s first vehicle, is geared towards luxury car enthusiasts thanks to a whopping price of $169,000. Lucid achieved a big milestone recently as it reported its first confirmed deliveries of the Air luxury sedan, and the stock price has been rallying on the news. With global EV sales increasing at a rapid pace, there is plenty of room for a company like this one to thrive, which is why it’s another exciting pick in the clean energy space.
Lucid will report its Q3 earnings on Monday, November 15th, which could be another big catalyst for the share price to look out for.
This is likely the top solar play to consider adding for the long-term, particularly since the price action has been so constructive following the company’s latest earnings report. Enphase Energy is a global energy management technology company that offers residential and commercial solar plus storage solutions. While there are several competitors in this space, the fact that Enphase is the world leader in microinverter technology makes it a true standout. The company recently announced its new IQ8 solar microinverters that offer an industry-first feature – they can power essential appliances during daytime outages even without a home battery.
Q3 was impressive for the company, which confirms that residential homeowners are still on board with the idea of solar roof panels and battery systems.
Enphase reported record quarterly revenue of $351.5 million, up 11% from Q2, and provided a strong Q4 outlook even amidst supply chain issues. The company could also be a big beneficiary of the aforementioned policy incentives from President Biden, which is certainly another reason to consider adding shares.
Before you consider Enphase Energy, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Enphase Energy wasn't on the list.
While Enphase Energy currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.
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