11 Best Green Energy Stocks to Buy

In this article, we discuss the 11 best green energy stocks to buy.

Green energy is one of the most rapidly growing businesses in the United States. Technological innovation and access to new financing methods have made it easier for firms to make green energy available to people across the globe. Some of the top firms working in the sector include Tesla, Inc. (NASDAQ:TSLA), General Electric Company (NYSE:GE), and First Solar, Inc. (NASDAQ:FSLR), among others discussed in detail below. According to a report by S&P Global, 2022 is set to witness record levels of wind and solar capacity expansion. 

Per the research firm, 44 GW of solar and 27 GW of wind power are set to be installed alongside more than 8 GW of battery storage in just the United States this year. In addition, early plant retirement costs due to the energy transition are presenting challenges for utilities and state regulators with 29 GW of coal retirements planned for 2020 through 2025. The firm also underlines that investor-owned companies are now targeting municipal system acquisition targets in the water and wastewater sector. 

Our Methodology

The companies that operate in the green 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 third quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.

Best Green Energy Stocks to Buy

11. Sunworks, Inc. (NASDAQ:SUNW)

Number of Hedge Fund Holders: 5    

Sunworks, Inc. (NASDAQ:SUNW) provides photovoltaic and battery-based power and storage systems for the agricultural, commercial, industrial, public works, and residential markets in the United States. On August 4, Sunworks posted earnings for the second quarter of 2022, reporting losses per share of $0.23, missing market estimates by $0.02. The revenue over the period was $36.4 million, up 13.4% compared to the revenue over the same period last year and beating market estimates by $2.95 million.

At the end of the third quarter of 2022, 5 hedge funds in the database of Insider Monkey held stakes worth $2.5 million in Sunworks, Inc., compared to 3 the preceding quarter worth $1.8 million.

Just like Tesla, Inc., General Electric Company, and First Solar, Inc., Sunworks, Inc. is one of the best green energy stocks to buy according to elite investors. 

10. 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. On November 30, Amazon Web Services reported that Brookfield Asset Management has picked Amazon Web Services, a subsidiary of e-commerce giant Amazon, as a cloud provider to accelerate its digital transition as well as enhance its renewable energy operations.

On September 30, investment advisory TD Securities upgraded Brookfield Renewable Partners L.P. stock to Action List Buy from Buy with a $41 price target. Analyst Sean Steuart issued the ratings update. 

At the end of the third quarter of 2022, 19 hedge funds in the database of Insider Monkey held stakes worth $161.3 million in Brookfield Renewable Partners L.P., compared to 19 in the previous quarter worth $236.3 million.

In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Brookfield Renewable Partners L.P. was one of them. Here is what the fund said:

“Brookfield Renewable Partners L.P. 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.”

9. NextEra Energy, Inc. (NYSE:NEE)

Number of Hedge Fund Holders: 21

NextEra Energy, Inc. (NYSE:NEE) generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. On November 3, NextEra Energy revealed that it is planning to build the first landfill renewable natural gas production facility in the state of Alabama, to be located at a landfill owned and operated by Coffee County. The company said the project will interconnect with a pipeline owned by Southeast Gas, which is the area’s top utility, which will buy all the gas from the project under a long-term contract. The firm has paid a dividend to shareholders for the past thirty-three years. These payouts have registered consistent growth in the past 27 years. 

On October 24, Guggenheim analyst Shahriar Pourreza maintained a Buy rating on NextEra Energy, Inc. stock and lowered the price target to $99 from $108, noting that the estimates are updated ahead of third-quarter earnings season from the Power and Utility sector to reflect known and measurable year-over-year items, to adjust for seasonality, and to re-mark to the latest commodity curves.

Among the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in NextEra Energy, Inc. with 9.5 million shares worth more than $742 million. 

In its Q3 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and NextEra Energy, Inc. was one of them. Here is what the fund said:

“NextEra Energy, Inc. is an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. NextEra’s regulated business includes Florida Power & Light, which serves nine million people in Florida. NextEra’s share price rose along with the passage of the U.S. Inflation Reduction Act, which considerably expands support for renewable energy.”

8. Canadian Solar Inc. (NASDAQ:CSIQ)

Number of Hedge Fund Holders: 22 

Canadian Solar Inc. (NASDAQ:CSIQ) designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power and battery storage products in Asia, the Americas, Europe, and internationally. On November 18, Canadian Solar announced that its 100 MWp Azuma Kofuji solar project in Japan has started commercial operations. This project is the company’s largest project in Japan and Fukushima Prefecture’s largest operational solar project to date.

On October 20, JPMorgan analyst Mark Strouse maintained a Neutral rating on Canadian Solar Inc. stock and lowered the price target to $42 from $48, noting that despite concerns regarding the overall economy, the advisory expects supply chains to continue to improve along with some constraints.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Canadian Solar Inc. with 843,262 shares worth more than $31.4 million. 

7. Clearway Energy, Inc. (NYSE:CWEN)

Number of Hedge Fund Holders: 25  

Clearway Energy, Inc. (NYSE:CWEN) operates in the renewable energy business in the United States. On November 29, Clearway Energy declared a quarterly dividend of $0.3672 per share. It is a 1.9% increase from the prior dividend of $0.3604. On November 14, Clearway declared a special share dividend of $0.25.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Clearway Energy, Inc. with 1 million shares worth more than $30.6 million. 

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Clearway Energy, Inc. was one of them. Here is what the fund said:

“Clearway Energy, Inc. 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.”

6. TPI Composites, Inc. (NASDAQ:TPIC)

Number of Hedge Fund Holders: 29    

TPI Composites, Inc. (NASDAQ:TPIC) manufactures and sells composite wind blades, and related precision molding and assembly systems to original equipment manufacturers (OEMs). On December 2, TPI Composites reported that as a part of the restructuring, it will reduce its global headcount by 18%, which also includes ending projects at its Yangzhou, China, manufacturing facility. The company estimates that it will recognize $45 million to $60 million in related pre-tax charges to its 2022 financial results.

On November 4, Craig-Hallum analyst Eric Stine upgraded TPI Composites, Inc. stock to Buy from Hold with a $17 price target, noting that it is time to get off the sidelines with green shoots starting to emerge in TPI’s Wind segment, post mixed third-quarter results.

At the end of the third quarter of 2022, 29 hedge funds in the database of Insider Monkey held stakes worth $89.9 million in TPI Composites, Inc., compared to 12 in the preceding quarter worth $33.3 million.

In addition to Tesla, Inc., General Electric Company, and First Solar, Inc., TPI Composites, Inc. is one of the best green energy stocks to buy according to elite investors. 

In its Q4 2021 investor letter, Saturna Capital, an asset management firm, highlighted a few stocks and TPI Composites, Inc. 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 in any singular industry or area. The dispersion of these detractors across geographies shows how investing in emerging markets can be idiosyncratic. TPI Composites, Inc. 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 challenging 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.”

5. Plug Power Inc. (NASDAQ:PLUG)

Number of Hedge Fund Holders: 32     

Plug Power Inc. (NASDAQ:PLUG) delivers end-to-end clean hydrogen and zero-emissions fuel cell solutions for supply chain and logistics applications, on-road electric vehicles, stationary power markets, and others in North America and internationally. On November 8, Plug Power posted earnings for the third quarter of 2022, reporting losses per share of $0.30, missing market estimates by $0.07. The revenue over the period was $188.6 million, up 58.9% compared to the revenue over the same period last year and missing market estimates by $58.61 million.

On November 10, Truist analyst Bronson Fleig maintained a Hold rating on Plug Power Inc. stock and lowered the price target to $18 from $32, noting that the management has affirmed its longer-term financial framework and that its demand appears constructive.

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Plug Power Inc. with 118.5 million shares worth more than $498.5 million. 

4. SolarEdge Technologies, Inc. (NASDAQ:SEDG)

Number of Hedge Fund Holders: 44    

SolarEdge Technologies, Inc. (NASDAQ:SEDG) designs, develops and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations worldwide. On November 7, SolarEdge Tech posted earnings for the third quarter of 2022, reporting earnings per share of $0.91, missing market estimates by $0.53. The revenue over the period was $836.7 million, up 58.9% compared to the revenue over the same period last year and beating market estimates by $12.19 million.

On November 18, BMO Capital analyst Ameet Thakkar maintained an Outperform rating on SolarEdge Technologies, Inc. stock and raised the price target to $355 from $316, noting that the combination of exposure to a transformational period in European Energy Markets driven by demand is attractive.

At the end of the third quarter of 2022, 44 hedge funds in the database of Insider Monkey held stakes worth $673.8 million in SolarEdge Technologies, Inc., compared to 40 in the previous quarter worth $749.4 million.

In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and SolarEdge Technologies, Inc. was one of them. Here is what the fund said:

“We are well-positioned to participate in the accelerating energy transition. High and rising utility costs combined with policy support are driving increased penetration of home solar plus storage systems in Europe. Israel-based SolarEdge Technologies expects to see significant growth in solar installations in this market led by Germany and Italy, among others, where consumers are not only demanding solar on the roof but a complete system solution including batteries. This phenomenon is accelerating revenue growth for these companies.” 

3. First Solar, Inc. (NASDAQ:FSLR)

Number of Hedge Fund Holders: 45  

First Solar, Inc. provides global photovoltaic (PV) solar energy solutions. On November 17, First Solar announced that it will supply an additional 4.9 gigawatts of its thin-film photovoltaic solar modules to Intersect Power. Intersect had previously announced an agreement for 2.4GW FSLR modules in July 2022. The firm has so far booked 43.7 GW of new business this year. 

On October 11, Argus analyst Bill Selesky maintained a Buy rating on First Solar, Inc. stock and raised the price target to $176 from $123, noting that the company’s operating loss was primarily the result of significantly higher logistics costs during the quarter. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in First Solar, Inc. with 3.2 million shares worth more than $426 million. 

2. General Electric Company (NYSE:GE)

Number of Hedge Fund Holders: 53     

General Electric Company operates as a high-tech industrial company in Europe, China, Asia, the Americas, the Middle East, and Africa. It operates through four segments: Power, Renewable Energy, Aviation, and Healthcare segments. On November 30, General Electric Company said that its board of directors approved a spin-off of its healthcare business, GE Healthcare Holding. GE Healthcare is expected to begin trading on Nasdaq on Jan. 4, 2023. The healthcare unit is expected to be converted into a corporation and renamed GE HealthCare Technologies before the spin-off.

On December 5, Deutsche Bank analyst Nicole Deblase maintained a Buy rating on General Electric Company stock and raised the price target to $94 from $89, noting that the supply chain is only just beginning to heal, backlogs are extended, and order growth generally remains quite healthy.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Pzena Investment Group is a leading shareholder in General Electric Company with 13.8 million shares worth more than $852 million.  

In its Q2 2022 investor letter, Longleaf Partners, an asset management firm, highlighted a few stocks and General Electric Company was one of them. Here is what the fund said:

“General Electric Company – Aviation, Healthcare and Power conglomerate GE was punished in the quarter amid top-down economic fears for this collection of seemingly cyclical businesses. However, the market is not giving the company credit for the material improvements CEO Larry Culp has made in his tenure. The balance sheet today is stronger than it has been in a very long time, and each of the three primary business segments each has strong paths to increasing earnings, regardless of the economic environment. Healthcare has historically not been a cyclical business. While Aviation typically has some economic sensitivity, the business still has a strong COVID rebound tailwind that should continue even in an uncertain environment. Power is a less cyclical business, and GE maintains a steady business servicing approximately one-third of the world’s electricity. GE is another example of strong insider buying indicating management’s confidence in the business, while the company also began buying back discounted shares. GE is still on track to break the company into three separate businesses, and we believe this will help the market properly weigh the value of each core segment.”

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 88   

Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems. On December 5, Tesla said that it is looking to reduce production at its Shanghai factory by 20%. The production cut, which will take effect as soon as this week, follows the EV maker’s assessment of its recent performance in the domestic market. The firm is a big player in the green energy space with a large solar business. 

On November 23, Citi analyst Itay Michaeli upgraded Tesla, Inc. stock to Neutral from Sell with a price target of $176, up from $141.33, noting that the year-to-date pullback in the shares has balanced out the near-term risk/reward.  

At the end of the third quarter of 2022, 88 hedge funds in the database of Insider Monkey held stakes worth $7.4 billion in Tesla, Inc., compared to 73 in the preceding quarter worth $7.2 billion.  

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Tesla, Inc. was one of them. Here is what the fund said:

“In 2014, before we began to invest in Tesla, I called Roger to ask whether he thought Elon Musk’s electric car business would succeed. I did not believe that Roger, an owner of dealerships that sell cars powered by internal combustion engines (ICE) would likely have a favorable opinion of Tesla’s prospects. That was principally for two reasons:

First, automobile manufacturing and distribution is unusually complicated, capital intensive, and highly regulated, which makes profitability problematic;

second, cars with ICE motors require extensive annual maintenance, and dealer services revenues, not profits from automobile sales, are the most important contributor to profits of perpetual licensed ICE car dealerships.

Penske Automotive Group is principally an ICE car dealer. Since electric cars are powered by batteries and need little service, franchised dealerships are incented to sell ICE, not EV automobiles. Further, Roger had been a long-term director of General Motors. General Motors’ ICE automobile business would be disrupted if Tesla were successful. (click here to read more…)

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This article is originally published at Insider Monkey.