In this article, we discuss 11 best alternative energy stocks to buy now. If you want to read about some more alternative energy stocks, go directly to 5 Best Alternative Energy Stocks to Buy Now.
The pace at which the world is now generating power through the use of solar panels, wind turbines, and other renewable technologies is nothing short of remarkable, compared to the situation just a few years ago. According to a report by the International Energy Agency, by 2026, global renewable electricity capacity is forecast to rise more than 60% from 2020 levels to over 4,800 GW. This figure is equivalent to the current total global power capacity of fossil fuels and nuclear combined.
Some of the best clean energy stocks that will benefit from this boom include Tesla, Inc. (NASDAQ:TSLA), General Electric Company (NYSE:GE), and First Solar, Inc. (NASDAQ:FSLR). Per the IEA, renewables are set to account for almost 95% of the increase in global power capacity through 2026. More than half of this will be provided by solar PVs alone. The agency claims that the amount of renewable capacity added over the period from 2021 to 2026 is expected to be 50% higher than from 2015 to 2020.
The IEA contends that renewable capacity is expected to further increase over 8% in 2022, reaching almost 320 GW. However, the agency has cautioned that unless new policies are implemented rapidly, growth will remain stable in 2023 because solar PV expansion cannot fully compensate for lower hydropower and steady year-on-year wind additions. Strong policy support for alternative energy targets by countries like the US and China are some of the reasons why growth forecasts for the industry have been revised upwards.
Our Methodology
The companies that operate in the alternative energy sector were selected for the list. The analyst ratings of these firms and the latest updates related to them are also discussed to provide some additional context. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
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Best Alternative Energy Stocks to Buy Now
11. Ocean Power Technologies, Inc. (NYSE:OPTT)
Number of Hedge Fund Holders: 3
Ocean Power Technologies, Inc. (NYSE:OPTT) makes and sells systems that generate power by harnessing the energy of ocean waves. The firm features on the list of best clean energy stocks to invest in. 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.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Millennium Management is the top shareholder in Ocean Power Technologies, Inc. (NYSE:OPTT), with 445,80 shares worth $251,000.
10. Sunworks, Inc. (NASDAQ:SUNW)
Number of Hedge Fund Holders: 3
Sunworks, Inc. (NASDAQ:SUNW) markets photovoltaic and battery-based power and storage systems. The firm features on the list of best clean energy stocks to invest in. The stock has benefited from the rising prices for solar cells in the past few months, partly because of supply chain problems that are also affecting other industries. On July 15, Northland analyst Donovan Schafer maintained an Outperform rating on Sunworks, Inc. (NASDAQ:SUNW) stock, backing the firm to post surprises in the third quarter and fourth quarter earnings results.
At the end of the second quarter of 2022, 3 hedge funds in the database of Insider Monkey held stakes worth $1.8 million in Sunworks, Inc. (NASDAQ:SUNW), compared to 7 in the previous quarter worth $4.8 million.
Just like Tesla, Inc. (NASDAQ:TSLA), General Electric Company (NYSE:GE), and First Solar, Inc. (NASDAQ:FSLR), Sunworks, Inc. (NASDAQ:SUNW) is one of the best clean energy stocks to buy now.
9. TPI Composites, Inc. (NASDAQ:TPIC)
Number of Hedge Fund Holders: 12
TPI Composites, Inc. (NASDAQ:TPIC) manufactures and sells composite wind blades, and related precision molding and assembly systems to original equipment manufacturers. The company is one of the most prominent clean energy stocks to invest in. The firm posted earnings for the second quarter of 2022 on August 3, reporting a revenue of $452 million, down more than 1% compared to the revenue over the same period last year but beating analyst expectations by $21 million. The firm said that capital expenditures were $15 million to $20 million during the time.
On September 22, Piper Sandler analyst Kashy Harrison maintained a Neutral rating on TPI Composites, Inc. (NASDAQ:TPIC) stock and raised the price target to $17 from $13, noting that the Inflation Reduction Act provides the firm with regulatory certainty.
Among the hedge funds being tracked by Insider Monkey, Washington-based firm Point72 Asset Management is a leading shareholder in TPI Composites, Inc. (NASDAQ:TPIC), with 691,800 shares worth more than $8.6 million.
In its Q2 2022 investor letter, Saturna Capital, an asset management firm, highlighted a few stocks and TPI Composites, Inc. (NASDAQ:TPIC) was one of them. Here is what the fund said:
“For both the fourth quarter and the full year, the Fund’s largest detractors were not concentrated to any singular industry or area. The dispersion of these detractors across geographies shows how investing in emerging markets can be idiosyncratic. TPI Composites, Inc. (NASDAQ:TPIC) was the Fund’s largest detractor in the fourth quarter and for the full year. A maker of wind turbine blades, TPI was particularly hard-hit by commodity inflation and challenged supply chains, leading the company to recapitalize in the fourth quarter. While the company continues to face near-term headwinds, this recapitalization should support the company’s long term position as a leading supplier to the world’s largest wind turbine manufacturers.”
8. Canadian Solar Inc. (NASDAQ:CSIQ)
Number of Hedge Fund Holders: 13
Canadian Solar Inc. (NASDAQ:CSIQ) designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power and battery storage products. The firm is among the best clean energy stocks to invest in. Canadian Solar Inc. (NASDAQ:CSIQ) posted earnings for the second quarter of 2022 on August 18, reporting earnings per share of $1.07, missing market estimates by $0.40. The revenue over the period was $2.3 billion, up more than 61% compared to the revenue over the same period last year and beating analyst expectations by $80 million.
On August 8, JPMorgan analyst Mark Strouse maintained a Neutral rating on Canadian Solar Inc. (NASDAQ:CSIQ) stock and raised the price target to $42 from $38, backing the firm to accelerate growth in an inevitable energy transition to renewables.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Canadian Solar Inc. (NASDAQ:CSIQ), with 623,600 shares worth more than $19 million.
7. Brookfield Renewable Partners L.P. (NYSE:BEP)
Number of Hedge Fund Holders: 19
Brookfield Renewable Partners L.P. (NYSE:BEP) owns a portfolio of renewable power generating facilities primarily in North America, Colombia, Brazil, Europe, India, and China. The firm is among the best clean energy stocks to invest in. Brookfield Renewable Partners L.P. (NYSE:BEP) has an impressive dividend profile. On August 8, the firm declared a quarterly dividend of $0.32 per share, in line with previous. The forward yield was a solid 3.19%. Brookfield Renewable Partners L.P. (NYSE:BEP) was founded in 1999 and is based in Bermuda. It has a market capitalization of more than $15 billion.
On August 8, JPMorgan analyst Mark Strouse maintained an Overweight rating on Brookfield Renewable Partners L.P. (NYSE:BEP) stock and raised the price target to $43 from $41, citing the Inflation Reduction Act as a positive catalyst for the shares.
At the end of the second quarter of 2022, 19 hedge funds in the database of Insider Monkey held stakes worth $236 million in Brookfield Renewable Partners L.P. (NYSE:BEP), compared to 18 in the previous quarter worth $262 million.
In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Brookfield Renewable Partners L.P. (NYSE:BEP) was one of them. Here is what the fund said:
“Brookfield Renewable Partners L.P. (NYSE:BEP) is a pure-play renewables operator and developer headquartered in Canada, focused on international hydro, solar, wind and storage technology. As more private and public institutions announce ambitious carbon reduction initiatives, Brookfield Renewable’s globally diversified, multi- technology renewables business makes it an attractive partner. Brookfield’s development pipeline stands at 18,000 MWs, providing confidence the company can meet its targeted double- digit cash flow growth through to 2025. The market narrative around the energy transition and energy security, along with increasing fossil fuels prices which have driven greater focus on switching to renewables, helped Brookfield shares in the quarter.”
6. Clearway Energy, Inc. (NYSE:CWEN)
Number of Hedge Fund Holders: 21
Clearway Energy, Inc. (NYSE:CWEN) operates as a renewable energy company in the United States. On June 28, the company announced that it had agreed to purchase a portfolio of operating wind projects from Capistrano Wind Partners for $255 million in cash plus the assumption of $160 million of debt. The portfolio consists of five utility-scale wind projects representing 413 MW of capacity located in Texas, Nebraska, and Wyoming that achieved commercial operations during 2008-2012.
At the end of the second quarter of 2022, 21 hedge funds in the database of Insider Monkey held stakes worth $177.5 million in Clearway Energy, Inc. (NYSE:CWEN), compared to 24 in the preceding quarter worth $181 million.
In addition to Tesla, Inc. (NASDAQ:TSLA), General Electric Company (NYSE:GE), and First Solar, Inc. (NASDAQ:FSLR), Clearway Energy, Inc. (NYSE:CWEN) is one of the best clean energy stocks to buy now.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Clearway Energy, Inc. (NYSE:CWEN) was one of them. Here is what the fund said:
“Clearway Energy, Inc. (NYSE:CWEN) primarily owns and operates contracted renewable generation assets. It also owns and operates conventional generation and thermal infrastructure assets. Clearway Energy’s share price continued to benefit from the completed sale of its thermal assets, which was above expectations, generating USD$1.3 billion in incremental proceeds. Additionally, there was optimism surrounding a stimulus bill passthrough which contains renewables subsidies.”
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Disclosure. None. 11 Best Alternative Energy Stocks to Buy Now is originally published on Insider Monkey.
