A quick and comprehensive list of the 7 best clean energy stocks this year
As investors, it is only natural to adapt to the times. The best and most successful investors are the ones that are able to change with the times and invest in the stocks of the future. No easy task, it can be hard to change long-established status quos or to identify the stocks poised to become the future of dominant forces in the market. But if you can do so, you already have an upper hand over other investors who are stuck in their ways.
One such industry that's set to revolutionize the market is the clean energy industry. As governments and industries push towards cleaner and greener forms of energy, the more traditional sources of fuel are likely to be deemed obsolete. Being able to switch gears and put your money in the future will not only be a smart move but also serve as a highly profitable endeavor that can see your earnings expand many times over.
Top 7 Clean Energy Stocks of 2021 (So Far)
So let's say you've decided to invest some money in clean energy, where specifically should you invest it in? Which companies are the ones that stand to gain the most from this green revolution? Well, we've done the research for you and now present you with the 7 best clean energy stocks of 2021:
1. Brookfield Renewable Partners L.P. (NYSE: BEP)
Market Value: $13.33 Billion
An investment into Brookfield Renewable Partners L.P. is not necessarily an investment into a clean energy company but rather an investment into a multitude of clean energies all in one. The massive portfolio of this company includes power generating facilities in North America, Colombia, Brazil, Europe, India, and China. The company is also known to primarily make use of hydroelectric, wind, solar, and biomass sources to generate electricity.
Stocks for Brookfield have outperformed analyst expectations with reports having them gain 43.4% in stock prices over the past 12 months. The company also saw revenues of $1.02 billion in the first quarter of 2021. By the end of the first quarter of 2021, 24 hedge funds were investing a stake value of roughly around $223 million.
2. SolarEdge Technologies, Inc. (NASDAQ: SEDG)
Market Value: $12.92 Billion
The company is a well-known developer and provider of direct current optimized inverter systems for solar photovoltaic installations worldwide. To put it simply, SolarEdge mainly deals with power optimizers, communication devices, and smart energy management solutions for residential, commercial, and small utility-scale solar installations and inverters.
With a good chunk of households opting to install their own energy sources and save themselves the paying exuberantly high electric bills, many investors expect to see the stocks of SolarEdge grow with time. This year alone, the company saw revenues amounting to $405.49 million and beating estimates by $9.92 million.
Over 13 analysts also label the stocks of the company as a must-buy, indicating high expectations for their share prices in the coming months. There are currently 32 hedge funds tied to the company. Collectively, their stake value amounts to about $458 million
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3. Chevron Corporation (NYSE: CVX)
Market Value: $190.61 Billion
Though not particularly known for its deliverance of green energy, the company has recently made investments in renewable energy along with a host of other products and services that try to reduce carbon emissions. It also has the distinction of being one of the first US oil companies to make such an investment in renewable energy -- foretelling a shift by what was once seen as a rigid industry towards the future of the energy market.
One such energy project is an investment in an offshore wind power plant which is seen by many as a herald for more things to come. Investors rallied towards the news of this and, in the first quarter of this year, the company reported a revenue of $32.03 billion. The stock has also gained 26.2% in the past 6 months and 26.48% year to date -- performing much better than other companies of its kind.
As of the first quarter of 2021, the company has 41 hedge funds investing a total stake value of $4.86 billion.
4. Enphase Energy, Inc. (NASDAQ: ENPH)
Market Value: $24.18 Billion
This company is known as a seller of home energy solutions and operates in the US and internationally. The company also offers semiconductor-based microinverters, which convert energy at the solar module level.
In the second quarter of 2021, the company announced and launched an immediate buyback program of its stocks worth $500 million. This comes as welcome news to investors who are already owning stocks of the company as a buyback of stocks increases the value of the stocks that are left.
In the first quarter of 2021, the company saw revenues of $301.75 million -- indicating an increase of 46.81% year over year while also beating estimates by $9.32 million. This comes along with a stock that has gained 272.86% in the past year.
By the beginning of this year, there were 49 hedge funds investing a total stake value of about $803 million. This is more than last year's 48 hedge funds.
5. Ford Motor Company (NYSE: F)
Market Value: $54.19 Billion
It might surprise some to hear that a car manufacturer is on the list of clean energy stocks, and indeed much of the company still has a lot of transition to do to get to the place similar to Tesla or much more established electric vehicle companies. But the fact that steps have been made by the company to transition means that investors currently holding stocks of the company can expect to ride the high of growth that this might drive.
An example of this is the recent launching of an electric scooter, S-100T, by Spin, a Ford subsidiary. Investors are clearly fond of this and, in the first quarter of 2021, revenues have been reported to reach $33.55 billion. This showcases a marked increase of 7.06% year over year -- beating estimates by $1.34 billion. The stock has gained 71.65% in the past 6 months and 79.11% year to date.
Another indicator of the company's viability as an investment is the fact that 49 hedge funds are investing in the company. Their investments amount to roughly $2.19 billion.
6. Tesla, Inc. (NASDAQ: TSLA)
Market Value: $619.79 Billion
Telsa has made a name for itself as a market leader in electric vehicles and renewable energy. As such its place on this list is deserved as it is an incomparable provider of EVs and energy generation and storage systems in the US, China, and internationally. Any investor worth his or her staff would keep an eye on the company's movements if not having investments in it altogether.
One such movement is the recent announcement of the opening of supercharger networks to other automobile companies. A day after this announcement, the company opened the first charging station in China with solar and energy storage facilities -- a landmark in China's continuous push towards more sustainable transportation.
Revenue for the company was reported to be at $10.39 billion in the first quarter of the year -- surpassing estimates by $112.38 million. Stocks have also seen gains of more than 2.43% in the past 6 months. A whopping 62 hedge funds are investing in the company with a total stake value of around $10.01 billion.
7. NextEra Energy, Inc. (NYSE: NEE)
Market Value: $151.42 Billion
Definitely one of the larger clean energy providers, the company is a leading distributor of electric power to retail and wholesale customers in North America. The electricity sold by the company is generated from wind, solar, nuclear, and other energy sources.
One of the things that makes this company an attractive investment is its payment of a quarterly dividend. Income investors would be happy to hear that NextEra recently announced a dividend of $0.385 per share with a forward yield of 2.07%. This comes at the heels of a reported $3.73 billion revenue. The stock of the company has also gained 21.89% in the past year.
63 hedge funds are investing in the company currently. Their shared stake value amounts to roughly $2.72 billion.
Bottom Line
And that was the top 7 clean energy stocks you can invest in this 2021. There are, of course, many other ways to invest in the renewable energy market. If you're interested in making other investments in sustainable energy, consider looking into:
It's no question that the world is shifting to renewable energy. As more and more governments create tax incentives and similar programs to promote green businesses and reduce carbon emissions, we can expect the profits of the companies that deal in such matters to grow exponentially.
All you need to do as an investor is put in the needed research and place your money in the right kind of stocks. Hopefully, this list was helpful in that regard.