In this article, we will discuss the 10 alternative energy stocks to buy amid the energy crisis in Europe. If you want to explore similar alternative energy stocks that can be eco-friendly plays, you can also take a look at 5 Alternative Energy Stocks to Buy Amid Energy Crisis in Europe.
As concerns around climate change heat up, generating electricity from renewable and eco-friendly sources is becoming a top priority of nations across the globe. The Biden administration has introduced policies that will help the U.S. achieve carbon neutrality by 2050. The U.S. plans on generating 100% of its electricity from carbon-free sources by 2035. Currently, the U.S. generates over half of its clean energy from nuclear power facilities. On April 19, the U.S. government announced $6 billion in funding to keep the nation’s nuclear plants operational that were otherwise expected to shut down.
The Energy Crisis in Europe and REPowerEU
The war in Ukraine has wreaked havoc in Europe, sparking fears of the nation going through an alarmingly cold winter. Germany, Europe’s largest economy, is heavily dependent on Russian oil and gas, fossil fuels, and liquified natural gas. With Putin ordering a complete cut-off of gas supplies to Europe via Nord Stream 1 on August 31, European policymakers are working on keeping the region lit and heated, especially for the winter.
On May 18, the European Union announced the REPowerEU plan to phase out dependence on Russian fossil fuels. One of the major pillars of the REPowerEU plan is significant upgrades to Europe’s green energy goals for 2030. The European Commission has raised its 2030 target range for generating electricity from renewables by between 40% and 45%. The EU plans to invest EUR 210 billion to in the REPowerEU initiative, which aims to ensure Europe’s energy security and accelerate its green transition.
Alternative Energy Industry: Market Size and Forecast
With the U.S. and EU leading the world’s green energy transition, the alternative energy industry is on the path to experiencing unprecedented growth. According to an analysis report by Allied Market Research, the global renewable energy market was worth roughly $882 billion in 2020 and is expected to hit a valuation of $1.97 trillion by 2030, growing at a compound annual growth rate of 8.4% over the forecasted period. Precedence Research expects the global renewable energy industry to garner a value of roughly $2 trillion by 2030, growing from $952 billion in 2021 at a CAGR of 8.6% over the forecasted period. North America is expected to be the fastest-growing region over the years to come and so far, Asia Pacific has held the most dominant market share in renewable energy consumption.
The key players that are operating in the alternative energy space and can benefit from Europe’s energy crisis as the region looks at alternatives to fossil fuels include SolarEdge Technologies, Inc. (NASDAQ:SEDG), Brookfield Renewable Partners L.P. (NYSE:BEP), and Plug Power, Inc. (NASDAQ:PLUG).
Photo by Nicholas Doherty on Unsplash
Our Methodology
To determine the 10 alternative energy stocks to buy amid the energy crisis in Europe, we reviewed the renewable energy industry. We looked at both international stocks and stocks listed on U.S stock exchanges. To determine which companies can potentially experience strong demand for their products and services as Europe looks for alternatives to fossil fuels, we preferred stocks that have operations in Europe. We have mentioned each company’s business model, the products it offers, and the regions it operates in. We have also included the analyst rating for each of our picks.
10. Siemens Gamesa Renewable Energy SA (OTC:GCTAF)
Siemens Gamesa Renewable Energy SA (OTC:GCTAF) is a leading European clean energy provider. The company operates through two business segments: Wind Turbines and Operations & maintenance. The company provides renewable energy and winder power solutions in Europe, the Middle East, Africa, the Americas, Asia, and Australia.
On July 15, Citi analyst Vivek Midha resumed coverage of Siemens Gamesa Renewable Energy SA (OTC:GCTAF) with a Neutral rating and a price target of EUR 18.05.
On August 2, Siemens Gamesa Renewable Energy SA (OTC:GCTAF) announced earnings for the third quarter of fiscal 2022. The company reported revenue of EUR 2.43 billion, in-line with analyst expectations. The company’s net income for the quarter amounted to EUR 446 million.
9. Ørsted A/S (OTC:DNNGY)
Ørsted A/S (OTC:DNNGY) is a leading Danish renewable energy provider. The company develops and operates offshore and onshore wind farms, solar farms, energy storage facilities, and bioenergy plants. The company’s primary business segments are Offshore, Onshore, and Markets & Bioenergy. Ørsted A/S (OTC:DNNGY) has operations in the United Kingdom, Germany, Denmark, the Netherlands, the United States, Taiwan, Japan, and South Korea. As of September 5, the stock is offering a forward dividend yield 1.89%.
Wall Street is bullish on Ørsted A/S (OTC:DNNGY). On June 30, HSBC analyst Adam Dickens upgraded Ørsted A/S (OTC:DNNGY) to Buy from Hold and raised his price target to DKK 930 from DKK 910. The analyst noted that offshore wind is relatively protected from inflation, regulatory challenges, and project delays. On August 4, Redburn analyst Simon Toyne upgraded Ørsted A/S (OTC:DNNGY) to Neutral from Sell.
On August 11, Ørsted A/S (OTC:DNNGY) announced earnings for the first half of 2022. The company grew its revenue by 84.8% year over year and reported a revenue of DKK 60 billion. The company also reported earnings per share of DKK 13.50.
In addition to Ørsted A/S (OTC:DNNGY), companies that can experience high demand from their European operations due to the ongoing energy crisis include SolarEdge Technologies, Inc. (NASDAQ:SEDG), Brookfield Renewable Partners L.P. (NYSE:BEP), and Plug Power, Inc. (NASDAQ:PLUG).
8. Vestas Wind Systems AS (OTC:VWDRY)
Vestas Wind Systems AS (OTC:VWDRY) is a leading global European developer and provider of wind turbines and is among the largest wind turbine companies in the world. The company operates through two business segments: Power Solutions and Services.
On August 10, Vestas Wind Systems AS (OTC:VWDRY) reported that its revenue for the fiscal second quarter of 2022 amounted to EUR 3.31 billion. For fiscal 2022, the company sees revenue in a range between EUR 14.5 billion and EUR 16 billion. The company expects its service revenue to grow by 10% for fiscal 2022.
Wall Street sees potential in Vestas Wind Systems AS (OTC:VWDRY). On July 29, HSBC analyst Sean McLoughlin upgraded Vestas Wind Systems AS (OTC:VWDRY) to Hold from Reduce and reiterated his price target of DKK 190. On August 11, Deutsche Bank analyst Gael de-Bray raised his price target on Vestas Wind Systems AS (OTC:VWDRY) to DKK 180 from DKK 170 and maintained a Hold rating on the shares.
7. Electricité de France S.A. (OTC:ECIFF)
Electricité de France S.A. (OTC:ECIFF), or more commonly known as the EDF group, is one of the biggest energy companies in France with operations worldwide. The company generates power through a variety of renewable sources such as solar, wind, biomass, and nuclear. Electricité de France S.A. (OTC:ECIFF) has over 50 active nuclear reactors and owns various nuclear projects in Europe and Asia.
On July 28, Electricité de France S.A. (OTC:ECIFF) reported earnings for the first half of 2022. The company generated a revenue of EUR 66 billion, up 67% year over year. that its revenue for the first half of 2022 grew by 67% year over year.
Electricité de France S.A. (OTC:ECIFF) is gaining in the market and also trading at bargain levels. As of September 5, the stock has returned 48% to investors over the past twelve months, is trading at a price-to-earnings ratio of 8.85, and is offering a strong forward dividend yield of 5.22%.
6. Canadian Solar Inc. (NASDAQ:CSIQ)
Number of Hedge Fund Holders: 13
Canadian Solar Inc. (NASDAQ:CSIQ) designs and manufactures solar ingots, wafers, cells, modules, and solar battery storage products among other solutions for the solar industry. The company has operations in Asia, the Americas, Europe, and international markets. Shares of Canadian Solar Inc. (NASDAQ:CSIQ) have surged 41.65% year to date, as of September 2.
On August 18, Canadian Solar Inc. (NASDAQ:CSIQ) announced earnings for the fiscal second quarter of 2022. The company reported earnings per share of $1.07 and outperformed estimates by $0.74. The company’s revenue for the quarter amounted to $2.31 billion, up 61.87% year over year, and outperformed market consensus by $83.39 million.
On August 8, JPMorgan analyst Mark Strouse raised his price target on Canadian Solar Inc. (NASDAQ:CSIQ) to $42 from $38 and reiterated a Neutral rating on the shares.
At the close of Q2 2022, 13 hedge funds were bullish on Canadian Solar Inc. (NASDAQ:CSIQ) and held stakes worth $54.2 million. This is compared to 15 positions in the previous quarter with stakes worth $37.91 million.
As of June 30, D E Shaw owns roughly 0.43 million shares of Canadian Solar Inc. (NASDAQ:CSIQ) and is the largest shareholder in the company. The fund’s stakes are valued at $13.5 million.
In addition to Canadian Solar Inc. (NASDAQ:CSIQ), Wall Street analysts are also bullish on SolarEdge Technologies, Inc. (NASDAQ:SEDG), Brookfield Renewable Partners L.P. (NYSE:BEP), and Plug Power, Inc. (NASDAQ:PLUG) as they see these companies gaining more market share in Europe as it seeks alternatives to fossil fuels.
Click to continue reading and see 5 Alternative Energy Stocks to Buy Amid Energy Crisis in Europe.
Suggested Articles:
- 11 Best Alternative Energy Stocks to Buy Right Now
- 11 Best Clean Energy Stocks To Buy
- 10 Best Alternative Fuel Stocks to Buy Now
Disclosure. None. 10 Alternative Energy Stocks to Buy Amid Energy Crisis in Europe is originally published on Insider Monkey.
