Are you looking for renewable energy stocks to buy? The world is at a critical juncture in the fight against climate change, and the transition to renewable energy is more important than ever. As countries set targets to reduce their carbon emissions, like the United Nation’s Net Zero Coalition, the demand for clean energy solutions is increasing exponentially.
As someone who has been trading stocks and options since 1999, I’ve witnessed an accelerated shift toward a more sustainable future with the help of renewable energy; I consider this a perfect opportunity to look into renewable energy stocks.
Three renewable energy stocks to buy are making waves in the sector and are offering solid investment potential based on their overall performance.
For this analysis, I’ve started with a screen of the top 30 Renewable Energy Companies based on the Market Cap. Then, I filtered the list for the following criteria:
- Year-on-year quarterly net income growth of over 30%,
- Analyst rating of 4 and above (moderate to strong buy) and
- An upside potential of over 50% based on high target prices.
This list of renewable energy stocks to buy is sorted in descending order based on upside potential.
First Solar (FSLR)
First Solar (NASDAQ:FSLR) drives the global transition to renewable energy by harnessing the sun’s power. The company manufactures thin-film PV solar modules, which offer a lower-carbon alternative to conventional crystalline silicon PV modules.
First Solar’s business operations include manufacturing cadmium telluride solar modules, project development activities, operations and maintenance services. The company has a presence in France, Japan, Chile and, of course, the United States.
First Solar recently conducted an analysis that found the company significantly contributed to last year’s U.S. economy by supporting over 16,000 jobs and adding $2.75 billion in value. The study projects that by 2026, First Solar will support an estimated 30,060 jobs and add $4.99 billion in value.
First Solar’s Q4FY’23 financial report is a relief for many investors. Its revenue Increased to $1.16 billion from $1 billion YOY. EPS also recovered considerably from a 7-cent loss to a $3.27 profit per share.
Its metrics, including its YOY net income growth of 84.65%, make it easy to understand why analysts rate the stock a strong buy, with a high target of $269 — over 52.6% upside potential from its current levels.
Fluence Energy (FLNC)
Fluence Energy (NASDAQ:FLNC) is a driving force in integrating renewable energy into power grids. It delivers highly modernized energy storage solutions worldwide.
The company offers various energy storage products like Gridstack Pro, Gridstack, Sunstack, Edgestack and Ultrastack. It caters to applications such as large-scale front-of-the-meter, DC-coupled solar + storage, commercial and industrial use cases, and more.
Fluence Energy will deliver a 35 MW / 100 MWh battery energy storage project for ENGIE at the Maxima power plant in the Netherlands by 2025. The project will deploy battery energy storage capacity to support the Dutch government’s goals of reducing CO2 emissions and ensuring grid stability.
Fluence Energy’s Q1’24 financials are pretty decent despite minor setbacks in metrics. Its revenues increased from $363.95 million to $310.46 million YOY. Its gross profit increased from $12 million to $36.39 million.
However, Fluence Energy’s net quarterly income loss was $25.55 million, an improvement from $37.19 million last year.
Analysts rate FLNC stock a strong buy, targeting a high price of $37, which translates to 107% upside potential from its current levels.
Brookfield Renewable Partners (BEP)
Brookfield Renewable Partners (NYSE:BEP) is a prominent player in the renewable energy sector and owns various assets worldwide. The company’s portfolio includes hydroelectric, wind, solar and energy storage facilities, with an operating capacity of approximately 33,000 megawatts.
Moreover, Brookfield Renewable Partners has a significant development pipeline and invests in sustainable solutions such as renewable natural gas, carbon capture and storage, recycling and nuclear services.
The parent company of Brookfield Renewable Partners L.P., Brookfield Asset Management, has recently secured $10 billion for its second Global Transition Fund in its first closing. The fund aims to invest in projects supporting the worldwide shift toward a net zero economy. This will likely benefit Brookfield Renewable Partners as it aligns with its focus on renewable energy.
Brookfield Renewable Partners reported pretty decent Q4’23 financial results with its all-positive YOY performance. Its revenue slightly increased to $1.32 billion from $1.20 billion. On top of that, the company’s net income significantly increased to $264 million from $60 million, placing its EPS in a recovering trajectory of $0.01 from the -$0.16 loss reported in FY’22.
Analysts rate BEP stock a strong buy with a high target of $52, reflecting over 152% upside potential.
On the date of publication, Rick Orford did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
