In this article, we will take a look at the 9 best clean energy stocks to buy today.
Clean energy stocks are gaining traction among investors supported by the growing number of renewable energy investments globally. According to the Global Energy Investment report by the International Energy Agency (IEA), renewable energy investment is estimated to account for 70% of the $530 billion spent on new generation capacity in 2021. Some of the leading clean energy stocks today are NextEra Energy, Inc. (NYSE:NEE), Enphase Energy, Inc. (NASDAQ:ENPH), First Solar, Inc. (NASDAQ:FSLR), and Plug Power Inc. (NASDAQ:PLUG).
Clean energy companies have outperformed oil companies and public equity market indices in recent years, owing to rising social awareness and the presence of international climate change treaties such as the Paris Agreement. According to a joint report by the International Energy Agency and the Centre for Climate Finance & Investment, the global renewable power portfolio generated higher returns of 186.6% and 422.7% over five and ten years, respectively, compared to fossil fuel’s returns of 59% and 59.3%.
A major catalyst for the renewable energy industry is the growing demand for electric vehicles. According to IEA global EV report, the global electric car sales increased by roughly 140% in the first quarter of 2021 compared to the same period in 2020, owing to sales of around 500,000 electric vehicles in China and around 450,000 in Europe. One of the leading electric vehicle manufacturers in the world is Tesla, Inc. (NASDAQ:TSLA). The company delivered 201,204 electric vehicles in the second quarter of 2021, up 121% year over year. Additionally, Tesla, Inc. (NASDAQ:TSLA) also offers solar panels and energy storage wherein the company posted $801 million in revenue from its energy and storage business.
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Our Methodology
The stocks on our list were picked based on their fundamentals and prospects for growth based on key business characteristics. We chose clean energy stocks that have long-term growth prospects and high analyst ratings. We selected renewable energy companies that engage in utilities, electric vehicles, renewable products such as inverters and solar panels, and finance.
We ranked these stocks based on the number of hedge funds having stakes in them, based on our data of over 873 hedge funds.
Why should we pay attention to hedge fund sentiment while choosing stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Let’s now look at the 9 best clean energy stocks to buy today.
Best Clean Energy Stocks To Buy Today
9. JinkoSolar Holding Co., Ltd. (NYSE:JKS)
Number of Hedge Fund Holders: 7
We start our list of the 9 best clean energy stocks to buy today with solar panel manufacturer JinkoSolar Holding Co., Ltd. (NYSE:JKS). The Chinese solar company is one of the biggest photovoltaic (PV) manufacturers in the world. JinkoSolar Holding Co., Ltd. (NYSE:JKS) also builds commercial solar energy projects and offers solar system integration services internationally.
On September 16, Roth Capital kept a Neutral rating on JinkoSolar Holding Co., Ltd. (NYSE:JKS) with a price target of $51 per share.
The company has a market cap of $2.1 billion. In the second quarter of 2021, JinkoSolar Holding Co., Ltd. (NYSE:JKS) reported an EPS of $0.89, beating estimates by $1.05. The company’s revenue in the second quarter came in at $1.23 billion and beat revenue estimates by $28.8 million. JinkoSolar Holding Co., Ltd.’s (NYSE:JKS) shipments in Q2 increased 16.4% year over year to 5,203 MW. The stock has gained 29% in the past twelve months.
At the end of the second quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $23.9 million in JinkoSolar Holding Co., Ltd. (NYSE:JKS), down from 13 hedge funds in the previous quarter worth $91.2 million.
Just like NextEra Energy, Inc. (NYSE:NEE), Enphase Energy, Inc. (NASDAQ:ENPH), First Solar, Inc. (NASDAQ:FSLR), and Tesla, Inc. (NASDAQ:TSLA), JinkoSolar Holding Co., Ltd. (NYSE:JKS) is a good clean energy stock to buy, according to market analysts.
8. Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI)
Number of Hedge Fund Holders: 10
Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) ranks eighth on the list of the 9 best clean energy stocks to buy today. The company provides capital to renewable energy companies. Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) has over $8 billion managed assets as of June 30, 2021.
On September 21, Keybanc analyst Sophie Karp initiated a Sector Weight rating on Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI).
The company has a market cap of $4.46 billion. In the second quarter of 2021, Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) reported an EPS of $0.57, beating estimates by $0.18. The company’s second-quarter revenue was $18.43 million. The stock has gained 44.5% in the past twelve months.
At the end of the second quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $141 million in Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI), down from 16 hedge funds in the previous quarter worth $117 million.
7. Brookfield Renewable Partners L.P. (NYSE:BEP)
Number of Hedge Fund Holders: 20
Brookfield Renewable Partners L.P. (NYSE:BEP) ranks seventh on the list of the 9 best clean energy stocks to buy today. Brookfield Renewable Partners L.P. (NYSE:BEP) generates and distributes electricity through solar, wind, and hydroelectric energy sources in its facilities in North America, Asia, Europe, and Brazil.
On September 22, Raymond James analyst Frederic Bastien upgraded Brookfield Renewable Partners L.P. (NYSE:BEP) to Outperform from Market Perform and increased his price target for the stock to $44 from $41.
The company has a market cap of $10.5 billion. In the second quarter of 2021, Brookfield Renewable Partners L.P. (NYSE:BEP) reported an EPS of -0.13, missing estimates by -0.17. The company’s revenue in the second quarter increased to $1.02 billion, up from $942 million in the second quarter of 2020, and beat revenue estimates by $90.6 million. The stock has gained 26% in the past twelve months.
At the end of the second quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $232 million in Brookfield Renewable Partners L.P. (NYSE:BEP), down from 24 hedge funds in the previous quarter worth $223 million.
NextEra Energy, Inc. (NYSE:NEE), Enphase Energy, Inc. (NASDAQ:ENPH), First Solar, Inc. (NASDAQ:FSLR), Tesla, Inc. (NASDAQ:TSLA), and Brookfield Renewable Partners L.P. (NYSE:BEP) are some of the most popular clean energy stocks today.
6. SunPower Corporation (NASDAQ:SPWR)
Number of Hedge Fund Holders: 25
SunPower Corporation (NASDAQ:SPWR) is a solar panel producer based in California that ranks sixth on the list of the 9 best clean energy stocks to buy today. SunPower Corporation (NASDAQ:SPWR) sells solar power systems and storage units to homeowners, enterprises, and the government. Some of SunPower Corporation’s (NASDAQ:SPWR) biggest commercial clients include Johnson & Johnson (NYSE:JNJ), Chevron Corporation (NYSE:CVX), and Microsoft Corporation (NASDAQ:MSFT).
On September 22, Evercore ISI analyst Sean Morgan initiated an Outperform rating on SunPower Corporation (NASDAQ:SPWR) with a price target of $27 per share, noting the company’s solar distribution in the growing residential, commercial, and industrial markets.
The company has a market cap of $3.8 billion. In the second quarter of 2021, SunPower Corporation (NASDAQ:SPWR) reported an EPS of $0.06, beating estimates by $0.02. The company’s second-quarter revenue was $309 million, an increase of 42% year over year. In the second quarter, SunPower Corporation (NASDAQ:SPWR) added 13,000 new customers, increasing the total number of customers to 376,000. The stock has gained 119% in the past twelve months.
At the end of the second quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $231 million in SunPower Corporation (NASDAQ:SPWR), up from 18 hedge funds in the previous quarter worth $182 million.
5. First Solar, Inc. (NASDAQ:FSLR)
Number of Hedge Fund Holders: 31
First Solar, Inc. (NASDAQ:FSLR) ranks fifth on the list of 9 best clean energy stocks to buy today. The Arizona-based solar energy firm sells photovoltaic (PV) solar panel solutions.
On August 2, the stock gained 2.8% after Susquehanna upgraded First Solar, Inc. (NASDAQ:FSLR) to Positive from Neutral and raised its price target to $120 from $89, noting management’s bullish comments on solar module demand and pricing on the company’s second-quarter results call.
On September 21, KeyBanc analyst Sophie Karp initiated a Sector Weight rating on First Solar, Inc. (NASDAQ:FSLR), citing the solar panel maker’s advantage to gain from the ongoing governmental moves supporting domestic solar products manufacturers.
The company has a market cap of $9.69 billion. In the second quarter of 2021, First Solar, Inc. (NASDAQ:FSLR) reported an EPS of $0.78, beating estimates by $0.22. The company’s revenue in the second quarter was $629 million and beat revenue estimates by $8.73 million. The company increased its 2021 revenue guidance for FY 2021 to $2.875 billion – $3.1 billion from $2.85 billion – $3.025 billion. The stock has gained 54% in the previous year.
At the end of the second quarter of 2021, 31 hedge funds in the database of Insider Monkey held stakes worth $317 million in First Solar, Inc. (NASDAQ:FSLR), up from 24 hedge funds in the previous quarter worth $304 million.
4. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 34
Plug Power Inc. (NASDAQ:PLUG) is a hydrogen fuel cell company based in New York that ranks fourth on the list of the 9 best clean energy stocks to buy today. Plug Power Inc. (NASDAQ:PLUG) markets fuel cell engines for electric vehicles (EVs), automated guided vehicles (AGVs), and unmanned aerial vehicles (UAVs). The company also offers clean power backup solutions to data centers and telecom networks.
In June, Plug Power Inc. (NASDAQ:PLUG) teamed up with a French car manufacturer Renault SA (OTC:RNLSY) to develop and market hydrogen-powered light commercial trucks and hydrogen charging stations in Europe by the end of 2021. The stock has gained 4.33% in the previous month.
On September 20, Plug Power Inc. (NASDAQ:PLUG) announced plans to build a new manufacturing facility in Fresno County, California, capable of producing 30 metric tons of liquid green hydrogen per day. The stock has gained 2.3% on September 23 after investment bank Piper Sandler upgraded Plug Power Inc.(NASDAQ:PLUG) to Overweight from Neutral with a $33 price target.
The company has a market cap of $15.5 billion. In the second quarter of 2021, Plug Power Inc. (NASDAQ:PLUG) reported an EPS of -$0.18, missing estimates by -$0.11. Yet, the company delivered solid Q2 results in August with net revenue of $124.6 million, an increase of 83% year over year, and beat revenue estimates by $13.4 million. Shares of Plug Power Inc. (NASDAQ:PLUG) increased 140% in the past twelve months.
At the end of the second quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $878 million in Plug Power Inc. (NASDAQ:PLUG), up from 25 hedge funds in the previous quarter worth $612 million.
3. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 44
Enphase Energy, Inc. (NASDAQ:ENPH) ranks third on the list of the 9 best clean energy stocks to buy today. The company manufactures and sells microinverters and energy storage for residential and enterprise solar panel systems.
On September 21, KeyBanc analyst Sophie Karp initiated an Overweight rating on Enphase Energy, Inc. (NASDAQ:ENPH) with a price target of $179 per share, emphasizing the solar company’s microinverter market share in the growing residential solar industry in the United States.
The company has a market cap of $21 billion. In the second quarter of 2021, Enphase Energy, Inc. (NASDAQ:ENPH) reported an EPS of $0.53, beating estimates by $0.11. The company’s second-quarter revenue came in at $316.1 million, an increase of 152% year over year, and beat revenue estimates by $4.82 million. Enphase Energy, Inc. (NASDAQ:ENPH) delivered 2,362,401 microinverters and 43 megawatt-hours of storage systems in the second quarter. The stock has gained 121% in the past twelve months.
At the end of the second quarter of 2021, 44 hedge funds in the database of Insider Monkey held stakes worth $724 million in Enphase Energy, Inc. (NASDAQ:ENPH), down from 49 hedge funds in the previous quarter worth $804 million.
2. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 59
NextEra Energy, Inc. (NYSE:NEE) is the world’s largest wind and solar energy generator, and it ranks second on the list of the 9 best clean energy stocks to buy today. NextEra Energy, Inc. (NYSE:NEE) produces and distributes solar, wind, and nuclear power. The company serves over 5.6 million customer accounts in North America.
On July 13, Credit Suisse analysts initiated coverage of NextEra Energy, Inc. (NYSE:NEE) with an Outperform rating with a price target of $85 per share.
The company has a market cap of $160 billion. In the second quarter of 2021, NextEra Energy, Inc. (NYSE:NEE) reported an EPS of $0.71, beating estimates by $0.02. The company’s revenue in the second quarter was $3.93 billion. Shares of NextEra Energy, Inc. (NYSE:NEE) increased 16% in the past twelve months.
At the end of the second quarter of 2021, 59 hedge funds in the database of Insider Monkey held stakes worth $2.67 billion in NextEra Energy, Inc. (NYSE:NEE), down from 63 hedge funds in the previous quarter worth $2.72 billion.
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 60
Topping the list of the 9 best clean energy stocks to buy today is Tesla, Inc. (NASDAQ:TSLA). Aside from manufacturing electric vehicles, Tesla, Inc. (NASDAQ:TSLA) is gaining momentum in the photovoltaic systems market. Tesla, Inc. (NASDAQ:TSLA) reported $801 million in sales from its energy and storage division in the second quarter of 2021, up 62% from the previous quarter and grew more than 116% year over year. In comparison to the previous year, the total deployment of energy storage and solar energy in Q2 2021 increased by 205% and 215%, respectively.
On September 17, Wedbush analyst Daniel Ives kept an Outperform rating on Tesla, Inc. (NASDAQ:TSLA) with a price target of $1,000 per share.
Tesla, Inc. (NASDAQ:TSLA) released a software update on September 24 that allows customers to gain access to the Full Self-Driving Beta (FSD beta) program, which the company sells in the United States for $10,000 upfront or $199 per month.
The company has a market cap of $753 billion. In the second quarter of 2021, Tesla, Inc. (NASDAQ:TSLA) reported an EPS of $1.45, beating estimates by $0.47. The company’s revenue in the quarter came in at $11.96 billion, an increase of 98% year over year, and beat revenue estimates by $559.33 million.
At the end of the second quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $9.29 billion in Tesla, Inc. (NASDAQ:TSLA), down from 62 hedge funds in the previous quarter worth $10 billion.
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Disclosure: None. 9 Best Clean Energy Stocks to Buy Today is originally published on Insider Monkey.
