Investing in renewable energy stocks has become increasingly attractive in the fight against climate change. With advancements in clean technology and growing support from governments, the renewable energy sector is poised for significant growth.
Key areas of interest within this sector include solar, wind, hydro, and energy storage, all of which have experienced massive growth. Two of the most promising signs for the sector is the prospect of lower interest rates going into 2025, and regulatory support for large-scale infrastructure projects. By 2028, several key players are well positioned to continue expanding their revenue, earnings and free cash flow.
This could bolster their stock prices by 50% or higher. Investors looking to capitalize on these trends should consider a diverse portfolio of companies poised to benefit from the ongoing energy transition.
Now, let’s discover the top 3 renewable energy stocks targeting 50% upside by 2028!
Top Renewable Energy Stocks: First Solar (FSLR)
First Solar (NASDAQ:FSLR) stands out as one of the most compelling renewable energy stocks to buy in 2024. The company has skyrocketed more than 60% year to date, and it is just getting started.
First Solar is a leading solar panel manufacturer that is taking the industry by storm. What sets the company apart from their competition is its complete vertical integration and strong operational execution. First Solar’s expertise spans the entire solar value chain, from module manufacturing to project development and energy services. Moreover, artificial intelligence is set to boost demand for solar and energy storage solutions in data centers. In Q1 FY24, revenue increased 45% year-over-year (YOY) to $794 million. Earnings per share (EPS) skyrocketed 456% YOY to $2.20 per share, with gross margins up sequentially. As the company ramps up manufacturing capacity in 2024, FSLR stock should certainly be kept on your radar.
NextEra Energy (NEE)
NextEra Energy (NYSE:NEE) is a trailblazer in the renewable energy space, boasting a diversified portfolio of clean energy assets. As the world’s largest producer of wind and solar energy, NextEra is at the forefront of the clean energy transition.
NextEra Energy’s focus on innovation coupled with its strong financial performance, position it as a reliable investment choice. Discerning investors look towards their robust pipeline opportunities to expand their solar and energy storage capacity over the next several years. In the 2023 fiscal year, NEE stock reported record revenue and earnings results. Revenue swelled to 34% YOY to $28.11 billion, with EPS up 71% to $3.60 per share. They delivered extremely impressive results, amid inflation and higher interest rates. Its backlog also remains robust, as the company’s subsidiaries, FPL & NextEra Energy Resources, deliver best in class services. Furthermore, management has forecast 10% dividend growth through 2026. This makes NEE stock one of the best renewable energy stocks to buy now.
ON Semiconductor (ON)
ON Semiconductor (NASDAQ:ON) is a global leader in power management and sensing solutions, playing a critical role in the advancement of renewable energy technologies. The company’s products are essential components in various renewable energy applications, from solar inverters, to electric vehicles and energy storage systems.
ON Semiconductor is having a tough year in 2024. It is still up against the slump in the EV market, as well as the broader slowdown in renewable energy projects. However, this is only temporary, and they have an exciting long term growth trajectory ahead. ON Semi’s powerful silicon carbide (SiC) platform appeals to a wide variety of industries. This includes automation, industrial, healthcare, and aerospace.
Having a large and diversified customer base allows the company to be less reliant on any one industry. Furthermore, its plan to expand its analog and mixed signals segment will help accelerate growth in the long term. As it ramps production for SiC wafers in 2024, ON Semi is laying the foundation for accelerated growth over the next decade.
On the date of publication, Terel Miles did not have (either 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.
