In this article, we will discuss 11 Most Profitable Renewable Energy Stocks Right Now.
Oil shocks have a way of changing investor psychology overnight. The recent Iran-U.S. war and the fuel disruptions that followed did more than send energy markets into turmoil; they reminded Wall Street that dependence on volatile fossil fuel supply chains carries a real economic cost. For billionaire investors and hedge fund managers, that realization is helping reshape the case for renewable energy from a politically charged theme into something far more compelling: a strategic investment in security, resilience, and long-term power demand.
For years, many renewable energy stocks were treated as sentiment-driven trades tied to subsidies, ESG flows, or optimistic climate narratives. That view is evolving rapidly. Today, sophisticated investors increasingly see solar, wind, battery storage, and grid infrastructure as critical assets in a world where geopolitical conflict can disrupt oil routes, spike natural gas prices, and strain electricity systems with little warning. In that environment, domestically generated power becomes more than clean energy: it becomes reliable energy.
That shift is exactly the type of structural change elite investors look for. Hedge fund managers such as Chris Hohn and Bill Gates have long favored industries benefiting from multi-year transitions. Renewables increasingly fit that profile, supported not only by policy incentives but also by falling technology costs, expanding corporate demand, and rising electricity needs from AI data centers and electrification trends.
Importantly, smart money is not buying every clean-energy ticker indiscriminately. Capital is flowing toward profitable utilities, grid equipment makers, battery leaders, and best-in-class developers with durable balance sheets. The focus is shifting from hype to execution.
The bottom line is simple: renewable energy is no longer just a climate story. It is becoming an energy independence story, an infrastructure story, and a geopolitical hedge all at once. For investors searching for the next major long-term theme, that combination may be difficult to ignore.
With this context in mind, here are some of the most profitable renewable energy stocks right now.
Our Methodology
We used screeners to identify renewable energy stocks with a net profit margin of more than 10% and upside potential of over 20%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
11 Most Profitable Renewable Energy Stocks Right Now
11. PG&E Corporation (NYSE:PCG)
Net Profit Margin TTM: 11%
PG&E Corporation announced on April 23 that it reaffirmed full-year 2026 non-GAAP core earnings guidance of $1.64 to $1.66 per share. Management stated that expected earnings drivers include returns on customer capital investment, unrecoverable interest expense impacts, allowance for funds used during construction, incentive revenues, tax benefits, cost savings initiatives, and other operational factors net of below-the-line costs.
On April 21, Bank of America raised its price target on PG&E Corporation to $23 from $22 while maintaining a Buy rating. The firm expects first-quarter 2026 EPS of $0.40 per share versus $0.33 in the prior-year period and does not anticipate changes to the company’s earnings growth or capital spending outlook during the quarterly investor call.
PG&E Corporation, founded in 1905 and headquartered in Oakland, California, is the parent company of Pacific Gas and Electric Company, a major investor-owned utility serving more than 5.5 million electricity and natural gas accounts across Northern and Central California. The company operates an extensive grid with approximately 98% greenhouse gas-free electricity sourced from hydro, solar, wind, and other clean resources, and targets net-zero emissions by 2040.
The reaffirmed earnings outlook and constructive analyst stance suggest improving visibility into PG&E’s regulated growth plan and capital investment returns. Its large customer base, grid modernization strategy, and clean energy transition efforts support a durable long-term utility investment case.
10. Sempra (NYSE:SRE)
Net Profit Margin TTM: 13.1%
Sempra (NYSE:SRE) saw mixed analyst revisions on April 21, when Morgan Stanley lowered its price target to $104 from $105 while maintaining an Overweight rating. The firm was updating valuations across North American regulated and diversified utilities and noted that utilities had outperformed the broader market during March.
On the same day, Wells Fargo raised its price target on Sempra to $118 from $115 while also maintaining an Overweight rating. The firm revised first-quarter 2026 estimates following company discussions and increased valuation multiples for regulated utility names under coverage.
Sempra is a major North American utility holding company focused on electric and natural gas infrastructure. Through subsidiaries including San Diego Gas & Electric, Southern California Gas, and Oncor Electric Delivery, the company serves roughly 40 million consumers, while Sempra Infrastructure also owns and operates renewable and energy transition assets exceeding 1,000 MW of capacity.
Dual Overweight ratings from major firms reflect continued confidence in Sempra’s diversified regulated utility and infrastructure model. Its combination of stable utility earnings, transmission exposure, and energy transition assets supports an attractive long-term growth profile.
9. Xcel Energy Inc. (NASDAQ:XEL)
Net Profit Margin TTM: 13.8%
Xcel Energy Inc. (NASDAQ:XEL) saw Morgan Stanley lower its price target on April 21 to $92 from $93 while maintaining an Equal Weight rating. The firm was revising valuations across North American utilities and noted that the sector had recently outperformed the broader equity market.
On the same day, KeyBanc raised its price target on Xcel Energy Inc. to $90 from $89 while keeping an Overweight rating. The firm stated that utilities have performed well year-to-date, with sector valuations remaining constructive, and expects a relatively quiet first quarter with limited earnings surprises.
Xcel Energy Inc. is a major U.S. investor-owned utility holding company serving approximately 3.7 million electric and 2.1 million natural gas customers across eight Western and Midwestern states. Headquartered in Minneapolis, Minnesota, the company was founded in 1909 and is a significant investor in wind, solar, and transmission infrastructure to deliver competitively priced clean energy.
Constructive analyst commentary and stable sector fundamentals reinforce Xcel’s appeal as one of the most profitable renewable energy stocks right now, with visible earnings streams. Its leadership in renewable generation and grid expansion positions the company to benefit from long-term electrification demand.
8. OGE Energy Corp. (NYSE:OGE)
Net Profit Margin TTM: 14.4%
OGE Energy Corp. (NYSE:OGE) received a favorable analyst revision on April 27 when Wells Fargo upgraded the shares to Equal Weight from Underweight and raised its price target to $47 from $42. The firm stated that the investment narrative has shifted from a “premium without proof” to a “premium with visible milestones,” citing expectations for firmer capital expenditure plans in the second-quarter update, a potential liquefied natural gas load tariff filing, and a more constructive regulatory and political backdrop in Oklahoma alongside reduced Street expectations.
On April 20, Barclays analyst Nicholas Campanella increased the price target on OGE Energy Corp. to $51 from $49 while maintaining an Overweight rating. The adjustment was made as part of a broader first-quarter preview across the power and utilities sector, reflecting continued constructive sentiment toward the company’s regulated earnings profile.
OGE Energy Corp. is a regulated electric utility holding company engaged in the generation, transmission, distribution, and sale of electricity to residential, commercial, and industrial customers. The company operates renewable assets, including the Centennial, OU Spirit, and Crossroads wind farms, along with multiple solar facilities. OGE Energy is headquartered in Oklahoma City, Oklahoma, and traces its origins to 1902 as Oklahoma Gas and Electric Company.
Multiple analyst upgrades and higher price targets indicate improving confidence in OGE’s regulatory outlook and capital deployment trajectory. With visible infrastructure milestones and growing renewable assets, the company appears well-positioned to deliver steady earnings growth with defensive utility characteristics.
7. The Southern Company (NYSE:SO)
Net Profit Margin TTM: 14.7%
The Southern Company (NYSE:SO) received a price target increase on April 21 when Wells Fargo raised its objective to $99 from $96 while maintaining an Equal Weight rating. Following discussions with management teams across the sector, the firm updated first-quarter 2026 estimates to reflect known and measurable drivers and also lifted its valuation multiple assumptions for regulated utilities.
On the same day, Truist initiated coverage of The Southern Company with a Hold rating and a $103 price target. The firm stated that vertically integrated utilities are well-positioned to benefit from infrastructure investment tied to growing data center electricity demand, even as it favored select peers more strongly.
The Southern Company is a major U.S. energy provider generating, transmitting, and distributing electricity and natural gas to approximately 9 million customers. Headquartered in Atlanta, Georgia, the company was founded in 1945 and operates a broad mix of generation resources, including solar and wind assets, while targeting net-zero emissions by 2050.
Rising analyst targets and sector demand tailwinds underscore Southern Company’s value as a large-scale regulated utility with expanding infrastructure relevance, positioning it among the 11 most profitable renewable energy stocks right now. Its sizeable customer footprint and ongoing clean energy investments support dependable long-term earnings and dividend potential.
6. Sunrun Inc. (NASDAQ:RUN)
Net Profit Margin TTM: 15.3%
Sunrun Inc. (NASDAQ:RUN) was the subject of a target revision on April 21, when Barclays lowered its price objective to $14 from $23 while maintaining an Equal Weight rating on the shares. The firm stated that first-quarter results are likely to reflect affiliate reductions and normal seasonal volume softness, while also suggesting the company may rely more heavily on asset sales in 2026 to offset softer tax equity markets. Barclays added that shareholder capital returns appear more likely in the second half of 2026 or 2027 once leverage and covenant thresholds are achieved.
On the same day, Citi reduced its price target on Sunrun Inc. to $20 from $26 while reiterating a Buy rating. The firm adjusted estimates across the alternative energy equipment and services sector as part of a first-quarter preview, noting expectations for a challenging earnings season for many companies in the group.
Sunrun Inc. is a residential solar, battery storage, and home energy services provider in the United States. Founded in 2007, the company pioneered the solar-as-a-service model, allowing homeowners to adopt rooftop solar systems with limited upfront cost through leases and power purchase agreements. Sunrun is headquartered in San Francisco, California.
Although analysts reduced near-term targets, both firms continue to recognize Sunrun’s strategic relevance within the residential energy transition and the eventual potential for shareholder returns once balance sheet metrics improve. As financing markets normalize and demand for distributed solar-plus-storage solutions expands, the company remains positioned to benefit from long-term clean energy adoption trends.
5. WEC Energy Group, Inc. (NYSE:WEC)
Net Profit Margin TTM: 15.9%
WEC Energy Group, Inc. (NYSE:WEC) received a higher valuation on April 21 when Wells Fargo raised its price target to $127 from $117 while maintaining an Overweight rating. The firm updated first-quarter estimates to reflect identifiable operational drivers across regulated utility coverage and also raised sector valuation multiples.
On the same day, Truist initiated coverage of WEC Energy Group, Inc. with a Hold rating and a $124 price target. The firm noted that vertically integrated utilities stand to benefit from rising infrastructure needs tied to data center power demand, though it expressed a stronger preference for select peers.
WEC Energy Group, Inc. is a major utility holding company providing electricity and natural gas service to roughly 4.7 million customers across the Midwestern United States. Headquartered in Milwaukee, Wisconsin, the company traces its origins to 1896 and is investing heavily in solar, wind, battery storage, and a path toward net-carbon-neutral electric generation by 2050.
With an impressive net profit margin TTM, WEC ranks 5th among the most profitable renewable energy stocks right now. The substantial Wells Fargo target increase signals confidence in WEC’s steady regulated earnings growth and capital investment pipeline. Combined with an expanding renewable portfolio, the company offers a blend of defensive stability and long-duration infrastructure upside.
4. Public Service Enterprise Group Incorporated (NYSE:PEG)
Net Profit Margin TTM: 17.2%
Public Service Enterprise Group Incorporated (NYSE:PEG) initiated new analyst coverage momentum on April 21 when Truist began coverage with a Hold rating and a $91 price target. The firm noted that vertically integrated electric utilities are among the clearest beneficiaries of infrastructure buildouts needed to serve accelerating load growth from data centers, highlighting favorable structural demand trends for the sector.
On April 15, Jefferies downgraded Public Service Enterprise Group Incorporated to Hold from Buy and lowered its price target to $89 from $90. The firm cited reduced confidence in existing nuclear plant data center transaction opportunities and noted that a ratepayer protection pledge could reduce hyperscaler interest in contracting with current generation assets absent new capacity additions.
Public Service Enterprise Group Incorporated is a predominantly regulated energy company based in New Jersey that provides electric and natural gas service. Founded in 1903, the company has evolved into a major utility infrastructure operator focused on clean energy, grid modernization, and customer efficiency programs, including its Solar 4 All initiative.
Even with more cautious near-term analyst sentiment, PEG retains valuable regulated utility assets in a power market benefiting from rising electricity demand. Its clean generation base and grid investment opportunities provide a stable platform for earnings growth over time.
3. First Solar, Inc. (NASDAQ:FSLR)
Net Profit Margin TTM: 29.3%
First Solar, Inc. (NASDAQ:FSLR) saw Citi analyst Vikram Bagri lower the firm’s price target on April 21 to $243 from $300 while maintaining a Buy rating on the shares. The revision came as part of a broader first-quarter preview across alternative energy equipment and services, with Citi warning that the sector could face a difficult earnings season in the near term.
On the same day, Barclays analyst Christine Cho reduced the price target on First Solar, Inc. to $213 from $228 while keeping an Overweight rating. The firm stated that gross margins could improve from roughly 7% this year to 12%-13% next year, though a return to the 20% range may depend on a favorable Section 232 trade outcome. Barclays also noted ongoing risks from elevated shipping and raw material costs.
First Solar, Inc. is a leading American solar technology company specializing in advanced thin-film photovoltaic modules used primarily in utility-scale solar developments. It falls 3rd in the list of 11 most profitable renewable energy stocks right now. The company focuses on supplying modules for large solar power plants and is headquartered in Tempe, Arizona. First Solar was founded in 1999.
Despite near-term sector headwinds, both analysts maintained constructive ratings, reflecting confidence in First Solar’s competitive position and earnings power. Its domestic manufacturing footprint, utility-scale exposure, and margin recovery potential support an attractive long-term investment case as solar deployment accelerates.
2. Stem, Inc. (NYSE:STEM)
Net Profit Margin TTM: 88.2%
Stem, Inc. (NYSE:STEM) received a price target reduction on April 9 when Susquehanna lowered its objective to $10 from $21 while maintaining a Neutral rating. The firm updated estimates and valuation targets ahead of first-quarter earnings for companies in its alternative energy coverage universe, reflecting a more cautious sector backdrop.
On March 10, UBS also reduced its price target on Stem, Inc. to $12 from $18 while keeping a Neutral rating on the shares. The revision suggested tempered expectations despite continued recognition of the company’s software-led position in energy storage optimization.
Stem, Inc. is a leader in artificial intelligence-driven clean energy solutions focused on optimizing electricity usage for commercial, industrial, and utility-scale customers. Following its acquisition of AlsoEnergy, the company offers the PowerTrack software platform for monitoring and managing solar, storage, and hybrid energy assets. Stem was founded in 2009 and is headquartered in Houston, Texas.
Although analysts have reduced near-term targets, Stem remains strategically positioned at the intersection of AI, battery storage, and distributed energy management. As grid complexity increases and energy optimization becomes more valuable, the company retains meaningful upside if execution improves.
1. XCF Global, Inc. (NASDAQ:SAFX)
Net Profit Margin TTM: 384.5%
XCF Global, Inc. (NASDAQ:SAFX) announced on April 16, alongside DevvStream Corp., that under their previously disclosed three-party business combination agreement with Southern Energy Renewables, the combined entity will explore creating an integrated platform to generate, verify, and monetize Section 45Z Clean Fuel Production Credits tied to sustainable aviation fuel output. Management indicated that, if successfully executed, the model could become an industry-first structure linking domestic SAF production directly with the transfer and sale of clean fuel tax credits, supported by XCF’s New Rise Reno facility, which has permitted annual nameplate capacity of 38 million gallons. The company noted that qualifying SAF production could be eligible for transferable credits of up to $0.60 per gallon through December 31, 2029, subject to final regulations and market conditions.
On the same day, Roth Capital analyst Craig Irwin raised the price target on XCF Global, Inc. to $1.20 from $0.40 while maintaining a Neutral rating. The firm cited tangible operational progress, stating that restart milestones for the New Rise facility remain on schedule relative to its model assumptions, while also highlighting the company’s collaboration and licensing agreement with Axens as a meaningful validation of XCF’s SAF technology platform.
XCF Global, Inc. is a renewable fuels company focused on developing and operating production facilities for sustainable aviation fuel, renewable diesel, and naphtha to support aviation decarbonization goals. The company is headquartered in Houston, Texas, and was founded in 2016.
The potential monetization of 45Z tax credits could materially enhance project economics and create a differentiated recurring value stream beyond fuel sales alone. Combined with analyst recognition of restart progress and third-party technology endorsement, XCF Global appears positioned as a high-upside speculative play on the expanding sustainable aviation fuel market.
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