In this article, we discuss 5 best alternative energy stocks to buy now. If you want to read about some more alternative energy stocks, go directly to 11 Best Alternative Energy Stocks to Buy Now.
5. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 26
Plug Power Inc. (NASDAQ:PLUG) delivers end-to-end clean hydrogen and zero-emissions fuel cell solutions for various sectors. It is one of the top clean energy stocks to invest in. On September 8, the company announced that it had secured the largest multi-site electrolyzer order in Europe to date. Lhyfe placed an order for ten 5MW PEM electrolyzer systems for production of green hydrogen across multiple plants in Europe. The electrolyzers will be assembled in Europe. Lhyfe aims to produce renewable green hydrogen using primarily wind and solar-power for various mobility applications in Europe.
On August 26, Craig-Hallum analyst Eric Stine maintained a Buy rating on Plug Power Inc. (NASDAQ:PLUG) stock and raised the price target to $38 from $31, highlighting the green hydrogen supply agreement with Amazon that had strengthened the firm.
At the end of the second quarter of 2022, 26 hedge funds in the database of Insider Monkey held stakes worth $259 million in Plug Power Inc. (NASDAQ:PLUG), compared to 33 in the preceding quarter worth $509.8 million.
4. First Solar, Inc. (NASDAQ:FSLR)
Number of Hedge Fund Holders: 26
First Solar, Inc. (NASDAQ:FSLR) provides photovoltaic solar energy solutions globally. It is one of the elite clean energy stocks to invest in. On September 19, the company announced that it had signed a deal to supply 600 MW of advanced thin film photovoltaic solar modules to Azure Power Global (NYSE:AZRE), an India-based firm. The company said the deal is the first of its kind for production from the factory in Tamil Nadu in India, which is expected to be commissioned in the second half of 2023. Azure expects to take deliveries starting in the fourth quarter of 2023 through 2025.
On September 9, Susquehanna analyst Biju Perincheril maintained a Positive rating on First Solar, Inc. (NASDAQ:FSLR) stock and raised the price target to $175 from $120, noting that the company recently announced plans to expand capacity.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in First Solar, Inc. (NASDAQ:FSLR), with 1.88 million shares worth more than $128 million.
3. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Number of Hedge Fund Holders: 40
SolarEdge Technologies, Inc. (NASDAQ:SEDG) designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic installations worldwide. The firm posted earnings for the second quarter of 2022 on August 2, reporting earnings per share of $0.95, missing market estimates by $0.02. The revenue over the period was $727 million, up more than 51% compared to the revenue over the same period last year. The firm said there were record revenues from the solar segment of $687.6 million.
On August 18, Morgan Stanley analyst Stephen Byrd maintained an Equal Weight rating on SolarEdge Technologies, Inc. (NASDAQ:SEDG) stock and raised the price target to $352 from $316, citing increased growth rates for clean energy.
At the end of the second quarter of 2022, 40 hedge funds in the database of Insider Monkey held stakes worth $749.4 million in SolarEdge Technologies, Inc. (NASDAQ:SEDG), compared to 47 in the previous quarter worth $835.6 million.
In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and SolarEdge Technologies, Inc. (NASDAQ:SEDG) was one of them. Here is what the fund said:
“We are well-positioned to participate in the accelerating energy transition. High and rising utility costs combined with policy support are driving increased penetration of home solar plus storage systems in Europe. Israel-based SolarEdge Technologies (NASDAQ:SEDG) expects to see significant growth in solar installations in this market led by Germany and Italy, among others, where consumers are not only demanding solar on the roof but a complete system solution including batteries. This phenomenon is accelerating revenue growth for these companies.”
2. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 59
NextEra Energy, Inc. (NYSE:NEE) transmits, distributes, and sells electric power to retail and wholesale customers in North America. The firm is among the best clean energy stocks to invest in. The company has an impressive dividend profile. It has consistently paid a dividend to shareholders for the past thirty-two years. The sector median in this regard is just sixteen years. These payouts have also registered consistent growth in the past twenty-six years. On July 29, NextEra Energy, Inc. (NYSE:NEE) declared a quarterly dividend of $0.425 per share, in line with previous. The forward yield was 2.01%.
On September 16, BMO Capital analyst James Thalacker maintained an Outperform rating on NextEra Energy, Inc. (NYSE:NEE) stocks and raised the price target to $100 from $92, highlighting the renewables backlogs and investment recovery of the firm in the past months.
At the end of the second quarter of 2022, 59 hedge funds in the database of Insider Monkey held stakes worth $2.76 billion in NextEra Energy, Inc. (NYSE:NEE), compared to 64 in the preceding quarter worth $2.85 billion.
In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and NextEra Energy, Inc. (NYSE:NEE) was one of them. Here is what the fund said:
“We increased our exposure to the energy transition during the quarter with new positions in Iberdrola (OTCPK:IBDSF), a Spanish-based integrated utility that is also one of the leading renewable energy developers in the world, and NextEra Energy, Inc. (NYSE:NEE), an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. The war has opened the eyes of the world that energy independence is critical. Renewables are for many countries the only way to get to the target. It is expected that existing renewable project pipelines will be executed faster, and more projects added to existing pipelines.
The energy transition would be extremely helpful for climate change and Iberdrola ranks well on our ESG matrix. NextEra, meanwhile, recently raised future earnings forecasts, citing a very favorable macro environment for rapid renewable generation expansion driven by decarbonization of the U.S. economy and the relative attractiveness of renewable generation in the context of high natural gas and power prices.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 72
Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems. The company is one of the most prominent clean energy stocks to invest in. Reports indicate that the company is aiming to double sales in Germany to 80,000 vehicles this year from 39,714 a year ago. According to Automobilwochem, the electric vehicle maker is running below that pace so far this year with 24,734 vehicles sold in Germany through the end of August. In August, Tesla showed some momentum in Germany and recorded market share of about 2.7%.
On September 16, Deutsche Bank analyst Emmanuel Rosner maintained a Buy rating on Tesla, Inc. (NASDAQ:TSLA) stock and raised the price target to $400 from $375, highlighting that the 2023 gross margin estimates benefit greatly from the Berlin and Texas ramp up.
At the end of the second quarter of 2022, 72 hedge funds in the database of Insider Monkey held stakes worth $7.1 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 80 in the preceding quarter worth $11.2 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Tesla, Inc. (NASDAQ:TSLA) was one of them. Here is what the fund said:
“In 2014, before we began to invest in Tesla (NASDAQ:TSLA), I called Roger to ask whether he thought Elon Musk’s electric car business would succeed. I did not believe that Roger, an owner of dealerships that sell cars powered by internal combustion engines (ICE) would likely have a favorable opinion of Tesla’s prospects. That was principally for two reasons:
First, automobile manufacturing and distribution is unusually complicated, capital intensive, and highly regulated, which makes profitability problematic;
second, cars with ICE motors require extensive annual maintenance, and dealer services revenues, not profits from automobile sales, are the most important contributor to profits of perpetual licensed ICE car dealerships.
Penske Automotive Group is principally an ICE car dealer. Since electric cars are powered by batteries and need little service, franchised dealerships are incented to sell ICE not EV automobiles. Further, Roger had been a long-term director of General Motors. General Motors’ ICE automobile business would be disrupted if Tesla were successful. (click here to read more…)
You can also take a peek at 11 Best Consumer Stocks To Buy Now and 10 Most Shorted Stocks in the World.
