While sustainable energy infrastructure might not address all of our power-related concerns, investors should nevertheless consider green energy stocks for the long haul. Fundamentally, the broader political and ideological winds are pushing in the direction of holistic sustainability. It’s no longer just a buzzword but increasingly a way of life. Enterprises need to respond to the real demand or be left behind.
Significantly, green energy stocks may also rise due to the compelling need for accretive infrastructure. As it stands, the U.S. power grid can’t keep pace with various advanced technologies. So, we need all solutions – hydrocarbons, nuclear and renewable – to collectively address a brewing problem. Otherwise, the lights could go out when we can least afford such a dilemma.
Finally, there’s big money in the space. Per Straits Research, the global renewable energy market size could reach a valuation of nearly $2.45 trillion by 2032. If so, you’re going to want to have exposure to these green energy stocks.
Ormat Technologies (ORA)
While perhaps not unique, Ormat Technologies (NYSE:ORA) certainly represents one of the most distinct enterprises among green energy stocks. Quite often, when people think “green,” they’re conjuring up images of solar panels and wind turbines. They’re not necessarily wrong. However, Ormat goes about sustainability in a different way: through the earth’s core.
Heat energy from the earth or geothermal offers a compelling potential solution for our wider energy needs. It’s abundant and it’s perpetual. Further, geothermal facilities tend to be out of sight, out of mind. The same can’t be said about ugly wind turbines that dot many communities’ sightlines.
Another advantage for Ormat is the financial resilience. In the past four quarters, the company’s average earnings per share hit 55.5 cents. That’s noticeably above the analysts’ estimate of 47.8 cents. This performance yielded an earnings surprise of nearly 22%.
For fiscal 2024, experts anticipate revenue to hit $892.1 million. If so, that would represent a 7.6% growth rate, making ORA one of the green energy stocks to consider.
Sunrun (RUN)
Based in San Francisco, California, Sunrun (NASDAQ:RUN) falls under the solar industry, as you might have guessed. It’s a sizable firm with nearly 11,000 full-time employees. Sunrun designs, develops, installs and distributes residential solar energy systems in the U.S. It also sells various components, such as panels and racking. As well, it provides batter storage solutions.
As with other solar-related enterprises, Sunrun suffered badly in 2022. Things really didn’t get a whole lot better in 2023. Much of the problem centered on the broader economy and monetary policy. Inflation shot higher, adding a burden to households. If that wasn’t bad enough, interest rates also spiked, imposing elevated borrowing costs.
The numbers tell the tale. In the past four quarters, Sunrun incurred an average loss per share of $1.67. However, analysts anticipated 28 cents in the red. Unfortunately, circumstances might not look good in fiscal 2024. However, fiscal 2025 could see revenue pop 16.8% to $2.47 billion. Thus, it’s possible that Sunrun could be setting itself up for a positive start to 2026.
Enphase Energy (ENPH)
Billed as an energy technology company, Enphase Energy (NASDAQ:ENPH) and its subsidiaries designs, develops, manufactures and sells home energy solutions for the solar photovoltaic industry. It serves mainly the U.S., though Enphase has in recent years expanded into the global arena. The company is perhaps best known for its semiconductor-based microinverter, which offers enhanced efficiencies and capabilities.
While ENPH stock managed to see some gains in 2022, it took stakeholders on a wild ride. Unfortunately, last year was a troubling one for the enterprise. As with other green energy stocks, Enphase suffered from economic and monetary policy dynamics. Certainly, the blistering inflation and rising interest rates didn’t help matters because of the pain it caused to Enphase’s clients.
Still, for the optimists, ENPH stock trades at 7.48X trailing-year sales. In the past year, this metric averaged about 8.64X. Therefore, it’s possible that Enphase could grow into its prior valuation. However, it might not happen in fiscal 2024. Instead, analysts are targeting end of fiscal 2025, when sales could rise 44.4% to $2.11 billion.
From there, Enphase could be on a strong footing for 2026. Thus, it’s one of the green energy stocks to watch.
On the date of publication, Josh Enomoto 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
