In this article, we discuss 10 best clean energy penny stocks to buy now. If you want to read about some clean energy penny stocks, go directly to 5 Best Clean Energy Penny Stocks To Buy Now.
Clean energy businesses are poised for growth in 2022 despite supply chain limitations, increased shipping costs, and rising prices for key commodities due to inflation. According to a report on the industry by research firm Deloitte, the demand for clean energy products in most market segments is increasing as support for environment, social, and governance (ESG) initiatives grows across the world. Per the International Energy Agency, renewable energy capacity is expected to reach 320 GW in 2022, an increase of more than 8% compared to 2021.
Some of the key trends shaping the industry this year include the interest in new clean energy tech, especially in the use of hydrogen as a fuel, the expansion of community solar projects, the focus on transmission infrastructure, and the evolution of supply chain strategies to navigate short-term economic headwinds. IEA estimates that the demand for wind and solar will increase dramatically in Europe in 2022 as nations move to decrease their reliance on Russian natural gas. A 5% year-on-year increase in biofuel demand is also forecast.
Even energy giants like Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and ConocoPhillips (NYSE:COP) are exploring ways to diversify their business models to decrease reliance on fossil fuels and move towards renewables. This unprecedented policy momentum towards accelerating energy efficiency and renewables is being hampered by inflation. Per the IEA, the cost of polysilicon, an important material used in solar panels, has more than quadrupled in the past year. Over the same time, the price of steel has climbed nearly 50% and copper is up 70%.
Overall, this has resulted in a 15% to 25% increase in raw material costs for all types of renewable energy products, per the IEA. Despite the steep rise in prices, solar power is expected to account for a 60% increase in the total global renewable capacity in 2022. China, Europe, and the US are expected to lead this revolution. Investors eager to jump on clean energy stocks that have explosive growth potential should check out some cheaper options in the sector that lower overall portfolio risk but provide the same bang for the buck.
Our Methodology
The companies that operate in the clean energy sector and are priced below $5 per share, as of August 4, were shortlisted. The firms which have the potential to grow in the coming months, based on the viability of the products and services they offer, were then selected. The business fundamentals and available analyst ratings of these firms are also discussed to provide readers with some additional context for their investment choices. Data from around 900 elite hedge funds tracked by Insider Monkey in the first quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
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Best Clean Energy Penny Stocks To Buy Now
10. Tantech Holdings Ltd (NASDAQ:TANH)
Number of Hedge Fund Holders: N/A
Share Price as of August 4: $0.27
Tantech Holdings Ltd (NASDAQ:TANH) makes and sells bamboo-based energy products. The shares have climbed in the past few weeks after the company announced that Shangchi Automobile, a subsidiary of Tantech, had obtained a new order for six vehicles. The order, which is expected to be delivered to a customer in Nigeria by the end of July, is for a set of customized, high-end midibuses. The buses made by the firm are fuel efficient and can seat 11 passengers for a luxury travel experience.
Tantech Holdings Ltd (NASDAQ:TANH) posted earnings for the 2022 fiscal year on July 18, reporting a revenue of more than $55 million, up more than 30% compared to the revenue over the past fiscal year.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Sabby Capital is a leading shareholder in Tantech Holdings Ltd (NASDAQ:TANH), with 1.5 million shares worth more than $734,000.
For those investors who cannot afford to diversify their portfolios with expensive energy plays like Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and ConocoPhillips (NYSE:COP), Tantech Holdings Ltd (NASDAQ:TANH) is one of the clean energy stocks to invest in for cheap exposure to the sector.
9. Ocean Power Technologies, Inc. (NYSE:OPTT)
Number of Hedge Fund Holders: 1
Share Price as of August 4: $1.18
Ocean Power Technologies, Inc. (NYSE:OPTT) makes and sells systems that generate power by harnessing the energy of ocean waves. The stock has gained in the past two weeks after the company announced that it had obtained a contract from the Department of Energy in the United States for advanced development of a next-generation wave energy converter. As part of the contract, the firm will receive more than a million dollars from the government over the next two years to develop and test the converter.
On July 13, Ocean Power Technologies, Inc. (NYSE:OPTT) posted earnings for the fourth fiscal quarter, reporting a revenue of $0.76 million, up more than 26% compared to the revenue over the same period last year.
Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is the top shareholder of Ocean Power Technologies, Inc. (NYSE:OPTT), with 24,643 shares worth $35,000.
8. United States Antimony Corporation (NYSE:UAMY)
Number of Hedge Fund Holders: 2
Share Price as of August 4: $0.45
United States Antimony Corporation (NYSE:UAMY) is a metals and mining firm with significant interests in antimony, a metal used in the manufacture of semiconductors. The company has a Zeolite division as well which provides zeolite deposits for a variety of environmental purposes, including soil amendment, water filtration, sewage treatment, nuclear waste cleanup, odor control, gas separation, and animal nutrition. These products are used as catalysts in floor cleaning and solar energy applications too. United States Antimony Corporation (NYSE:UAMY) was founded in 1968 and is based in Montana. It posted a revenue of more than $7.70 million in 2021, up from $5.3 million in the previous year.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in United States Antimony Corporation (NYSE:UAMY), with 996,600 shares worth more than $643,000. At the end of the first quarter of 2022, 2 hedge funds in the database of Insider Monkey held stakes worth $664,000 in United States Antimony Corporation (NYSE:UAMY), compared to 4 in the previous quarter worth $812,000.
7. Energous Corporation (NASDAQ:WATT)
Number of Hedge Fund Holders: 3
Share Price as of August 4: $1.42
Energous Corporation (NASDAQ:WATT) develops wireless charging solutions. The firm primarily generates revenue from project development and does have plans for project sales as it grows. It has decreased cash burn in recent years and looks set for revenue growth in the coming months. The company focuses on the development and deployment of wireless charging solutions that are generated from renewable sources. One of the premier projects of the firm, which it has also begun selling recently, is the 1W WattUp PowerBridge.
Energous Corporation (NASDAQ:WATT) posted earnings for the first quarter of 2022 in early May, beating market estimates on earnings per share and revenue by $0.03 and $0.02 million, respectively. The firm had $42 million in cash and cash equivalents at the end of the quarter.
At the end of the first quarter of 2022, 3 hedge funds in the database of Insider Monkey held stakes worth $166,000 in Energous Corporation (NASDAQ:WATT), compared to 5 in the previous quarter worth $800,000. Among the hedge funds being tracked by Insider Monkey, New York-based firm Two Sigma Advisors is a leading shareholder in Energous Corporation (NASDAQ:WATT), with 70,600 shares worth more than $85,000.
6. Orbital Infrastructure Group, Inc. (NASDAQ:OIG)
Number of Hedge Fund Holders: 3
Share Price as of August 4: $0.74
Orbital Infrastructure Group, Inc. (NASDAQ:OIG) provides electric power and solar infrastructure. The firm was formerly known as the Orbital Energy Group but has rebranded and shifted to Texas. The company posted a revenue of over $70 million in the first quarter of 2022, up nearly 1,150% compared to the revenue over the same period last year. It expects full year revenue to be in the range of $375 million to $425 million, against consensus estimates of around $330 million. On July 5, Alliance Global Partners analyst Jeffrey Campbell maintained a Buy rating on Orbital Infrastructure Group, Inc. (NASDAQ:OIG) stock and lowered the price target to $4 from $8.50.
At the end of the first quarter of 2022, 3 hedge funds in the database of Insider Monkey held stakes worth $2.5 million in Orbital Infrastructure Group, Inc. (NASDAQ:OIG), compared to 7 in the preceding quarter worth $7.8 million. Among the hedge funds being tracked by Insider Monkey, London-based firm Marshall Wace LLP is a leading shareholder in Orbital Infrastructure Group, Inc. (NASDAQ:OIG), with 351,948 shares worth more than $647,000.
In addition to Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and ConocoPhillips (NYSE:COP), Orbital Infrastructure Group, Inc. (NASDAQ:OIG) is one of the stocks to watch for exposure to the energy sector.
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Disclosure. None. 10 Best Clean Energy Penny Stocks To Buy Now is originally published on Insider Monkey.
