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12 Best Affordable Energy Stocks to Buy Now

In this article, we discuss the 12 best affordable energy stocks to buy now. If you want to read about some more affordable energy stocks, go directly to 5 Best Affordable Energy Stocks to Buy Now.

The energy sector comprises a variety of industries that include heavy hitters like renewable energy, electric power, nuclear power, and coal, in addition to oil and gas. These sub-sectors have started to slowly eat away at the dominance of the latter duo in the energy space, in part due to new ESG initiatives adopted by many businesses in the wake of global concerns around climate change. The energy services sector, comprising the sale of technology, energy, analytics, access to the grid, and personalized services, has also grown. 

The global energy demand has been rising slowly, increasing at an average rate of around 2% in the past four decades. The Chinese dominate the numbers in terms of new demand, with other big economies like the United States, India, and Russia following close behind. According to a recent report by Fortune Business Insight, the global energy as a service market is expected to grow from $70.46 billion in 2022 to $147.56 billion by 2029, at an impressive compound annual growth rate of 11.1%. 

The energy services market was severely impacted by the pandemic and the Russian war in Ukraine in the past two years. Even as demand rises, there has been a marked decline in commercial and industrial activities in the energy sector. As per the report by Economist Intelligence, energy consumption demand grew by a very small number in 2022 due to high prices and a contraction in gas and oil supplies from Russia. For the remainder of 2022, oil prices are likely to remain above US$100/b as long as conflict rages in Ukraine. 

Meanwhile, gas prices will rise by at least 50% this year, per the report. This is due to disruption of supply chains which will come from three sources: difficulties affecting land-based routes; restrictions on air links; and the cancellation of sea freight routes from Ukraine. The EIU estimates that global energy consumption will grow at a healthier pace in 2023 due to these factors. Some top firms working in the sector include Devon Energy Corporation (NYSE:DVN), ConocoPhillips (NYSE:COP), and Chevron Corporation (NYSE:CVX). 

EIU also notes that a shift towards renewable energy sources is a major theme in the industry that new investors must be wary of.  According to Bloomberg, from 2010 to 2019, the renewable energy resources collectively drew around $2.9 trillion in investments. Solar energy accounts for 8% of the global energy generation and wind energy accounts for 9%, as of 2022. Governments are likely to invest more in the renewable energy production sectors due to recession fears, geopolitical tensions, and fears of regional conflicts affecting supplies. 

Our Methodology

The companies that operate in the energy sector and were trading at below $50 per share, as of December 1, were selected for the list. Special importance was assigned to outlining the basic business fundamentals and analyst ratings for each firm to provide readers with some context so they can make more informed investment choices. Data from around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.

Best Affordable Energy Stocks to Buy Now

12. Fuel Tech, Inc. (NASDAQ:FTEK)

Number of Hedge Fund Holders: 2  

Share Price as of December 1: $1.24

Fuel Tech, Inc. (NASDAQ:FTEK) provides boiler optimization, efficiency improvement, and air pollution reduction and control solutions to utility and industrial customers worldwide. On November 3, Ful Tech disclosed that it got multiple air pollution contracts from new and existing customers in the US. The contracts have an aggregate value of $2.7 million. The company got orders for its ULTRA systems from the Midwest, West Coast and Western US.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Fuel Tech, Inc. (NASDAQ:FTEK) with 776,416 shares worth more than $908,000. 

Unlike Devon Energy Corporation (NYSE:DVN), ConocoPhillips (NYSE:COP), and Chevron Corporation (NYSE:CVX), Fuel Tech, Inc. (NASDAQ:FTEK) is one of the more affordable stocks to buy now in the energy sector. 

11. Ocean Power Technologies, Inc. (NYSE:OPTT)

Number of Hedge Fund Holders: 2   

Share Price as of December 1: $0.62

Ocean Power Technologies, Inc. (NYSE:OPTT) develops and commercializes proprietary systems that generate electricity by harnessing the renewable energy of ocean waves in North America, South America, Europe, and Asia. On October 5, Ocean Power Technologies said that it was awarded a $529,025 procurement contract by Amentum Services. Ocean Power will assist Amentum in providing the Department of Defense and Information Analysis Center with land, air, space, and port & coastal surveillance services in support of the US Department of Homeland Security Science & Technology Directorate.

At the end of the third quarter of 2022, 2 hedge funds in the database of Insider Monkey held stakes worth $223,000 in Ocean Power Technologies, Inc. (NYSE:OPTT), compared to 3 the preceding quarter worth $324,000.

10. NACCO Industries, Inc. (NYSE:NC)

Number of Hedge Fund Holders: 4 

Share Price as of December 1: $45.26

NACCO Industries, Inc. (NYSE:NC) engages in the natural resources business. On November 17, NACCO Industries announced that it will pay a dividend of $0.2075 per share on the 15th of December. The dividend yield was 1.8%, which is below the average for the energy industry but impressive considering the size of the firm. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in NACCO Industries, Inc. (NYSE:NC) with 223,917 shares worth more than $10.5 million. 

9. Natural Resource Partners L.P. (NYSE:NRP)

Number of Hedge Fund Holders: 4    

Share Price as of December 1: $42.14

Natural Resources Partners L.P. (NYSE:NRP) owns, manages, and leases a portfolio of mineral properties in the United States. On October 27, Natural Resource Partners and Occidental Petroleum’s Low Carbon Ventures subsidiary unveiled an agreement for the evaluation and potential development of a permanent carbon dioxide sequestration hub in South Texas.

At the end of the third quarter of 2022, 4 hedge funds in the database of Insider Monkey held stakes worth $26 million in Natural Resources Partners L.P. (NYSE:NRP), compared to 3 in the preceding quarter worth $20.6 million.

8. Broadwind, Inc. (NASDAQ:BWEN)

Number of Hedge Fund Holders: 6 

Share Price as of December 1: $1.74

Broadwind, Inc. (NASDAQ:BWEN) manufactures and sells structures, equipment, and components for clean tech and other specialized applications primarily in the United States. On September 19, Broadwind revealed that it received $38 million in new tower orders from a leading global wind turbine manufacturer. It will manufacture the towers at its Abilene, Texas facility. The company expects to complete production in the first half of 2023.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium management is a leading shareholder in Broadwind, Inc. (NASDAQ:BWEN) with 176,825 shares worth more than $534,000. 

7. FuelCell Energy, Inc. (NASDAQ:FCEL)

Number of Hedge Fund Holders: 12     

Share Price as of December 1: $3.46

FuelCell Energy, Inc. (NASDAQ:FCEL) designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed baseload power generation. On September 8, FuelCell Energy posted earnings for the third quarter of 2022, reporting losses per share of $0.08, missing market estimates by $0.02. The revenue over the period was $42.1 million, up 60.8% compared to the revenue over the same period last year and beating market estimates by $7.94 million.

On October 19, Jefferies analyst Sam Burwell initiated coverage of FuelCell Energy, Inc. (NASDAQ:FCELL) stock with a Hold rating and $3 price target, highlighting that the Option Value of energy is up again which is driven by a constrained capital cycle.

At the end of the third quarter of 2022, 12 hedge funds in the database of Insider Monkey held stakes worth $57 million in FuelCell Energy, Inc. (NASDAQ:FCEL), compared to 10 in the previous quarter worth $62.8 million.

6. Enterprise Products Partners L.P. (NYSE:EPD)

Number of Hedge Fund Holders: 21   

Share Price as of December 1: $24.81

Enterprise Products Partners L.P. (NYSE:EPD) provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. On November 1, Enterprise Products Partners posted earnings for the third quarter of 2022, reporting earnings per share of $0.62, missing market estimates by $0.01. The revenue over the period was $15.46 billion, up 42.8% compared to the revenue over the same period last year and beating market estimates by $1.64 billion.

At the end of the third quarter of 2022, 21 hedge funds in the database of Insider Monkey held stakes worth $221.6 million in Enterprise Products Partners L.P. (NYSE:EPD), compared to 23 in the preceding quarter worth $184.4 million. 

In contrast to Devon Energy Corporation (NYSE:DVN), ConocoPhillips (NYSE:COP), and Chevron Corporation (NYSE:CVX), Enterprise Products Partners L.P. (NYSE:EPD) is one of the more affordable stocks to buy now in the energy sector. 

In its Q2 2022 investor letter, Fairholme Capital Management, an asset management firm, highlighted a few stocks and Enterprise Products Partners L.P. (NYSE:EPD) was one of them. Here is what the fund said:

“Enterprise Products Partners L.P. (NYSE:EPD) is the largest position in the Fund. Enterprise provides processing and transportation services to producers and consumers of natural gas, natural gas liquids, and oil. These hydrocarbons are critical for modern life and have few if any, ready substitutes. Commodity prices do not greatly affect the company’s toll road fees. Enterprise is priced at less than nine times distributable cash flows and pays a 7.5% cash distribution.”

Click to continue reading and see 5 Best Affordable Energy Stocks to Buy Now.

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Disclosure. None. 12 Best Affordable Energy Stocks to Buy Now is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

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One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
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AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

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AI needs energy. Energy needs infrastructure.

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This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

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This company is completely debt-free.

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The Hedge Fund Secret That’s Starting to Leak Out

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…