We recently published a list of 10 Best Wind Power and Solar Stocks To Invest In Now. In this article, we are going to take a look at where Sunrun Inc. (NASDAQ:RUN) stands against other best wind power and stocks to invest in now.
According to a report by the World Economic Forum published on November 8, the US election result is expected to have a significant impact on the transition to renewable energy sources. Solar and wind energy stocks fell sharply following the election, as Donald Trump’s victory is anticipated to have a negative short-term impact on current climate policies. The president-elect has proposed policies that include increasing natural gas pipelines, ending offshore wind energy projects, and boosting fossil fuel production by easing restrictions on drilling on federal lands. He has also expressed intentions to withdraw the US from the Paris climate agreement and to support nuclear energy production.
Despite these challenges, analysts predict that the boom in renewable energy in the US is unlikely to be dramatically slowed. The Inflation Reduction Act passed during the outgoing administration, is expected to inject $1 trillion of spending into green energy, with estimates that 85% of the money has gone to districts that elected Republicans. This financial support, along with existing opposition to the curtailment of renewable energy, suggests that the long-term trajectory of the energy transition remains uncertain but potentially resilient.
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Trump’s Energy Policy and the Role of Elon Musk
In an interview with CNBC on November 13, Will Rhind, CEO of GraniteShares, discussed the potential implications of a Trump presidency on renewable energy such as wind and solar. Rhind noted that the playbook on energy policy was already seen in the previous Trump administration. The Trump administration has historically been more supportive of fossil fuels and less focused on renewable energy. Therefore, stocks and sectors favored by the Biden administration, such as solar and wind, might see a downturn.
Rhind suggested that the overall narrative may seem like it’s shifting back toward traditional energy sources. However, Elon Musk seems to be playing an integral role in the Trump administration, and he has been a proponent of climate policies, with his electric vehicle (EV) industry and other businesses, which suggests that energy transition policies may not be as impactful as some might expect today.
While the outcome of the US election and the anticipated policies of the new administration pose short-term challenges to renewable energy, the long-term outlook remains cautiously optimistic.
A field of solar panels glistening in the afternoon sun, symbolizing the company’s renewable energy ambitions.
Our Methodology
To compile our list of the 10 best wind power and solar stocks to invest in now, we used clean energy ETFs plus online rankings to compile an initial list of 20 wind and solar energy stocks. We then used Insider Monkey’s Hedge Fund database to rank 10 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Sunrun Inc. (NASDAQ:RUN)
Number of Hedge Fund Holders: 43
Sunrun Inc. (NASDAQ:RUN) is a leading provider of residential solar energy solutions, offering solar installations, battery storage, and energy services. The company specializes in customized solar systems for homeowners and has over 1 million customers. Sunrun Inc. (NASDAQ:RUN) also offers products on leasing and financing options.
Sunrun Inc. (NASDAQ:RUN) is expanding its presence in new markets, including the new homes business, where it is working with 9 of the top 10 new home builders in California and over half of the top 20 home builders in the country. The company has signed a multi-year exclusive agreement with Toll Brothers in California and expects its new home business to grow at least 50% over the next year. Sunrun Inc. (NASDAQ:RUN) is also exploring new products and services, including grid services, which have the potential to generate significant value for the company. The company has 16 grid service programs active across the country, with over 20,000 storage systems participating, and is working with utilities and other partners to develop new programs and services.
Sunrun Inc. (NASDAQ:RUN) is also focused on reducing its debt and improving its balance sheet, with a strong cash position and no near-term corporate debt maturities. The company is committed to allocating excess unrestricted cash to reduce parent recourse debt and driving significant shareholder value through its capital allocation strategy.
Overall, RUN ranks 5th on our list of best wind power and stocks to invest in now. While we acknowledge the potential of RUN to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RUN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.