In this article we will take a look at the 5 best renewable energy stocks to buy now. For a detailed analysis of the alternative energy industry, go directly to the 10 Best Renewable Energy Stocks to Buy Now.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, advertising technology one of the fastest growing industries right now, so we are checking out stock pitches like this under-the-radar adtech stock that can deliver 10x gains. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind let’s go over the 5 best renewable energy stocks to buy now.
5. General Electric Company (NYSE: GE)
General Electric Company (NYSE: GE) is a Boston-based multinational company operating in aviation, healthcare, electronics, power, and other industries. The firm has stakes in the wind, solar, hydro, and hybrid branches of the clean energy sector. The company was founded in 1892 and is placed fifth on our list of 10 best renewable energy stocks to buy now. The firm is most famous for wind energy solutions driven by state-of-the-art wind turbines that operate both onshore and offshore for power generation needs.
The company has a market cap of more than $119 billion and posted an annual revenue of close to $80 billion in December 2020. Last month, Bank of America retained a Buy rating on GE stock with a price target of $15. Analysts at the bank projected a positive outlook for the firm in 2021. Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Eagle Capital Management held the most shares in the firm – 125 million – worth more than $1.3 billion. Pzena Investment Management was second on the list with shares worth $970 million.
Longleaf Partners Global Fund, in their Q4 2020 investor letter, mentioned General Electric Company (NYSE: GE):
“General Electric (GE) (-3%, -0.28%; 74%, 3.32%), the Aviation, Healthcare and Power conglomerate, was among the top two contributors in the fourth quarter after a very difficult first half. The company’s crown jewel Aviation business sells and maintains commercial and military jet engines. With air travel frozen, this year’s second quarter was its worst in over a century of operating history with a $680 million operating loss. 3Q revenues improved sequentially as some flights resumed but still declined 39% year-over-year. Yet GE Aviation earned a remarkable $356 million in the third quarter due to extreme cost discipline. With fewer expenses, the same world-class competitive position and favorable long-term air-travel growth prospects, Aviation should keep improving incrementally with the potential to emerge stronger than ever within several years. GE Healthcare revenues, excluding non-recurring ventilator sales for COVID treatment, also improved 3% year-over-year in an encouraging performance. GE also took steps to give back in 2020 by working to help develop thousands of ventilators to aid coronavirus patients. The stock has roughly doubled from its March low as business results improved, in large part due to CEO Larry Culp’s excellent management. Please stay tuned for the next episode of the Price-to-Value Podcast in which Vice-Chairman Staley Cates interviews Larry Culp on Lean manufacturing, GE’s culture, navigating COVID and his outlook for the business.”
4. NextEra Energy, Inc. (NYSE: NEE)
NextEra Energy, Inc. (NYSE: NEE) is a Florida-based electric utility company. Although the firm generates electric power through fossil fuels, it focuses on the capabilities installed for wind, solar, and nuclear power generation. It has a total of 28,400 megawatts of net generating capacity and serves almost 11 million people through an estimated 5.6 million customer accounts in the US. It was founded in 1925 and is placed fourth on our list of 10 best renewable energy stocks to buy now.
On April 19, the firm announced that it was purchasing four wind power assets from competitor Brookfield in a deal worth $733 million. The firm said that the assets were located in strong clean energy markets, California and New Hampshire, and would contribute to the growth of the company in 2021. At the end of the fourth quarter of 2020, 61 hedge funds in the database of Insider Monkey held stakes worth $3 billion in the firm, down from 64 in the preceding quarter worth $2.7 billion.
3. Enphase Energy, Inc. (NASDAQ: ENPH)
Enphase Energy, Inc. (NASDAQ: ENPH) is a California-based company that designs and manufactures software-driven clean energy solutions for residential areas that focus on solar generation, home energy storage and web-based monitoring and control. The firm was founded in 2006 and is placed third on our list of 10 best renewable energy stocks to buy now. The products that the company makes include a semiconductor-based microinverter, AC battery storage systems; as well as Envoy and Enlighten, which are data-based services.
On March 29, the company announced that it had signed an agreement with Rubicon Energy in South Africa to distribute its products to customers in the African country. The shares of the firm have been surging this month as it is expected to benefit from a new government plan for alternative energy. Out of the hedge funds being tracked by Insider Monkey, Hong Kong-based investment firm Sylebra Capital Management held the most shares in the firm – 1.9 million – worth more than $346 million. Citadel Investment Group was 2nd with shares of $242 million.
2. SolarEdge Technologies, Inc. (NASDAQ: SEDG)
SolarEdge Technologies, Inc. (NASDAQ: SEDG) is an Israel-based solar solutions firm. It designs, develops and markets direct current optimized inverter systems for solar photovoltaic installations globally. The product list of the firm includes inverters, power optimizers, communication devices, and smart energy management solutions. The firm also has stakes in the energy storage and electric vehicle charging businesses. It offers lithium-ion cells and battery packs and uninterrupted power supply solutions as well.
The firm was founded in 2006 and is placed second on our list of 10 best renewable energy stocks to buy now. At the end of the fourth quarter of 2020, 28 hedge funds in the database of Insider Monkey held stakes worth $458 million in the firm, down from 31 in the preceding quarter worth $553 million. On March 19, financial advisory firm Susquehanna upgraded SolarEdge stock to Positive from Neutral with a price target of $345. SolarEdge will also benefit from the US government plan to extend tax credits for clean energy firms by ten years.
1. JinkoSolar Holding Co., Ltd. (NYSE: JKS)
JinkoSolar Holding Co., Ltd. (NYSE: JKS) is a Shanghai-based manufacturer of solar products. It markets solar modules, silicon wafers, solar cells, recovered silicon materials, and silicon ingots. The firm provides solar integration services and also develops commercial solar power projects. It is one of the largest solar panel manufacturing firms in the world. JinkoSolar operates in China, the United States, Japan, Germany, the United Kingdom, South Africa, India, and other countries.
On April 9, the company reported that its quarterly revenues at the end of 2020 rose to $1.44 billion, posting a year-on-year growth of 5%. It also said that it expects the shipments of solar products to rise 30% in 2021 on the back of increased demand as the economy reopens following the pandemic. At the end of the fourth quarter of 2020, 18 hedge funds in the database of Insider Monkey held stakes worth $212 million in the firm, up from 10 in the preceding quarter worth $42 million.
You can also take a peek at 10 Best Biotech Stocks To Buy For 2021, and Top 10 Best Freelancing Platforms and Websites for 2021.
