In this article we discuss the 5 best renewable energy stocks to buy according to hedge funds. If you want to read our detailed analysis of these companies, go directly to the 10 Best Renewable Energy Stocks to Buy According to Hedge Funds.
5. Brookfield Renewable Partners L.P. (NYSE: BEP)
Number of Hedge Fund Holders: 24
Brookfield Renewable Partners L.P. (NYSE: BEP) is a renewable power generating company, operating mainly in North America, Colombia, Brazil, Europe, India, and China. The main renewable energy sources used by the company are hydroelectric, wind, and solar. This company ranks 5th on our list of the best renewable energy stocks to buy according to hedge funds.
In May, Brookfield Renewable Partners L.P. (NYSE: BEP) announced a $0.31 per share quarterly dividend, with a forward yield of 3.24%. The new dividend will be payable by June 30th. The company’s first quarter 2021 GAAP EPS was $0.24, missing estimates by $0.21. However, its reported $1.02 billion revenue beat estimated by $92.07 million.
Brookfield Renewable Partners L.P. (NYSE: BEP) gained 54.38% in the past year. By the end of the first quarter, 24 hedge funds had stakes in the company worth $223 million, up from 20 hedge fund holders in Q420.
Like Tesla, Inc. (NASDAQ: TSLA), Workhorse Group Inc. (NASDAQ: WKHS) and Arcimoto, Inc. (NASDAQ: FUV), Brookfield Renewable Partners L.P. (NYSE: BEP) is a good stock to invest in.
4. NRG Energy, Inc. (NYSE: NRG)
Number of Hedge Fund Holders: 35
NRG Energy, Inc. (NYSE: NRG) is a US integrated power company operating through Texas, East, and West. The company produces and sells electricity in residential, industrial, and commercial areas. NRG Energy, Inc. (NYSE: NRG) utilizes solar and battery storage among other energy sources to generate electricity. This company ranks 4th on our list of the best renewable energy stocks to buy according to hedge funds.
Despite some losses in the first quarter of 2021, NRG Energy, Inc. (NYSE: NRG) saw quadrupled revenues compared to Q420. However, alongside this, they also reported a first quarter GAAP loss of $82 million due to the Texas storm in February. The company missed EPS estimates by $0.46. Yet, the stock gained 14.31% in the past 6 months and 2.75% year to date.
Despite Q1 losses, 35 hedge funds hold stakes in NRG Energy, Inc. (NYSE: NRG) worth $1.6 billion, up from 31 hedge funds holding stakes in the company worth $1.46 billion in Q420.
3. Vistra Corp. (NYSE: VST)
Number of hedge fund holders: 46
Vistra Corp. (NYSE: VST) is an electric power generation company based in the US, retailing electricity and natural gas to residential, industrial, and commercial areas in the US. This company is ranked 3rd on our list of the best renewable energy stocks to buy according to hedge funds.
This April, Vistra Corp. (NYSE: VST) announced a $0.15 per share quarterly dividend, making the forward yield 3.52%. The dividend will be payable by June 30th. This decision came after the company saw a $1.6 billion impact from the winter storm in February, but it has claimed to intend to remain committed to the dividend specified.
Vistra Corp. (NYSE: VST) reported a $3.21 billion revenue in the first quarter of 2021 but missed EPS estimates for the quarter by $1.88. The stock has, however, gained 2.7% in the past 6 months and as of the first quarter, 46 hedge funds held stakes in the company worth $1.2 billion, up from 39 hedge fund holders in Q420.
2. The AES Corporation (NYSE: AES)
Number of Hedge Fund Holders: 51
The AES Corporation (NYSE: AES) is a power generation and utility company. The company owns and operates power plants to generate power to sell for various uses, such as industrial production and utility provision. The AES Corporation (NYSE: AES) makes use of various fuels, sources, and technologies to generate electricity, including solar, hydroelectric, and wind energy sources. This company ranks 2nd on our list of the best renewable energy stocks to buy according to hedge funds.
According to the company’s first quarter of 2021 report, The AES Corporation’s (NYSE: AES) revenue of $2.63 billion demonstrated growth of 12.4% year over year and beat estimates of $260 million. However, the company’s non-GAAP EPS of $0.28 missed estimates by $0.02. This April, the company also announced a $0.15 quarterly dividend per share, making the forward yield stand at 2.13%.
The AES Corporation (NYSE: AES) gained 21.5% in the past 6 months and 11.36% year to date. As of the first quarter of 2021, 52 hedge funds held stakes in the stock worth $1.54 billion, up from the 38 hedge fund holders holding stakes worth $9 million in Q420.
1. General Electric Company (NYSE: GE)
Number of Hedge Fund Holders: 68
General Electric Company (NYSE: GE) is a high-tech industrial company worldwide, and it’s ranked 1st on our list of the best renewable energy stocks to buy according to hedge funds. The company’s renewable energy sector generates energy through onshore and offshore wind, blades, hydroelectric, storage, solar, and grid solutions, among others.
On June 8th, the company increased debt repurchase to $7 billion. A few days before this announcement, the company also claimed that its aviation business would benefit from free cash flow in 2021. UBS also reiterated a “Buy” rating for the General Electric Company (NYSE: GE) stock, alongside its $17 price target.
General Electric Company (NYSE: GE) reported revenue of $17.12 billion in the first quarter of 2021 and its $0.03 EPS for the quarter beat estimates by $0.02. Compared to last quarter’s miss by $0.01 with $0.08 EPS, this demonstrates an improvement. The stock also gained 26.41% in the past 6 months and 30.75% year to date.
As of the end of the first quarter of 2021, 68 hedge funds held stakes in General Electric Company (NYSE: GE) worth $6.16 billion, although this is down from the 69 hedge funds holding stakes in the company in Q420 by 1. Despite this, the stake value of the first quarter of 2021 is much higher than that of Q420, which had stood at $5.68 billion.
Vulcan Value Partners, in its first quarter 2021 investor letter, mentioned General Electric Company (NYSE: GE). Here is what Vulcan Value Partners has to say about General Electric Company in its letter:
“General Electric is outperforming our expectations for 2021 as the economic recovery is occurring faster than expected. We are particularly pleased with its free cash flow generation. We are happy to own it in our portfolio.”
You can also take a peek at 15 Biggest Renewable Energy Companies and Stocks and Top 10 Energy Dividend Stocks To Invest In.
