In this article, we will discuss the 11 best renewable energy stocks to buy right now. If you want to skip reading about the renewable energy market, current market trends, and its future outlook, you can go directly to 5 Best Renewable Energy Stocks to Buy Right Now.
As concerns regarding global warming and climate change arise, governments around the world are pouring billions of dollars into the renewables sector to reduce their carbon footprint. According to BloombergNEF, over $755 billion was invested in the energy sector globally, of which $366 billion was attributed to the renewables sector, up 6.5% from 2020. According to Renewable Energy Market Outlook 2030, the global renewable energy market was valued at $881.7 billion in 2020 and is projected to reach $1.97 trillion by 2030, growing at a CAGR of 8.4% from 2021 to 2030. The renewable energy sector is booming and renewable energy stocks are expected to soar over the next decade, which presents an attractive investment opportunity for retail investors and elite hedge fund owners alike.
The Ukraine Conflict Causes Renewable Stocks To Soar
The Russian invasion of Ukraine has catalyzed the growth of renewable stocks. On February 24, 2022, when Russia launched the invasion in Ukraine, several renewable energy stocks jumped, and have since been on an upwards trajectory. Solar energy solutions provider Sunrun Inc. (NASDAQ:RUN) went up by 22%, solar equipment manufacturer Enphase Energy, Inc. (NASDAQ:ENPH) gained 16%, and solar panel maker First Solar, Inc. (NASDAQ:FSLR) spiked 6.4% within 24 hours of the invasion.
The sanctions on Russian oil and gas, coupled with the climate change targets set by economies around the world, are driving the growth of renewable energy stocks such as Sunrun Inc. (NASDAQ:RUN), First Solar, Inc. (NASDAQ:FSLR), NextEra Energy, Inc. (NYSE:NEE), and Enphase Energy, Inc. (NASDAQ:ENPH).
Photo by Jason Blackeye on Unsplash
Our Methodology
To determine the 11 best renewable energy stocks to buy right now, we did a careful assessment of the renewable energy industry and identified the major players. We then looked at each company’s product portfolio, investor networks, and earnings reports. We made use of Insider Monkey’s database to derive the hedge fund sentiment for each stock and then narrowed down our selection to stocks that are most popular among investor circles today. We also gave weight to the analyst sentiment for each stock and included analyst ratings for each entry.
Without further ado, let’s look at the 11 Best Renewable Energy Stocks to Buy Right Now.
11 Best Renewable Energy Stocks to Buy Right Now
11. Canadian Solar Inc. (NASDAQ:CSIQ)
Number of Hedge Fund Holders: 18
Canadian Solar Inc. (NASDAQ:CSIQ) manufactures and markets solar power products in North America, South America, Europe, South Africa, the Middle East, Australia, Asia, and internationally. The company operates through two segments: Module and System Solutions, and Energy. On March 17, 2022, Canadian Solar Inc. (NASDAQ:CSIQ) released its earnings report for the fiscal fourth quarter of 2021. The company reported revenues of $1.53 billion, up 46.90% year over year from $1.04 billion. The company’s earnings per share were reported at $0.17, outperforming market consensus by $0.04. As of April 3, 2022, Canadian Solar Inc. (NASDAQ:CSIQ) has gained 12.29% over the past six months and boasts a market capitalization of $2.27 billion.
On March 28, 2022, Citi analyst J.B. Lowe raised his price target on Canadian Solar Inc. (NASDAQ:CSIQ) to $45 from $40 and maintained a Buy rating on the shares, in light of the company’s strong fourth-quarter 2021 earnings results.
The hedge fund sentiment for Canadian Solar Inc. (NASDAQ:CSIQ) is positive. Insider Monkey’s database shows that 18 hedge funds were bullish on Canadian Solar Inc. (NASDAQ:CSIQ) at the close of the fourth quarter of 2021, having stakes worth roughly $39.5 million in the company. This is compared to 12 hedge funds in the third quarter of 2021, with stakes worth $35.7 million. As of March 11, 2022, Ken Griffin’s Citadel Investment Group was the leading shareholder in Canadian Solar Inc. (NASDAQ:CSIQ) having stakes worth $9.44 million in the company.
10. SunPower Corporation (NASDAQ:SPWR)
Number of Hedge Fund Holders: 20
SunPower Corporation (NASDAQ:SPWR) offers solar, storage, and home energy solutions to customers primarily in the United States and Canada. This March, SunPower Corporation (NASDAQ:SPWR) announced a multi-year exclusive agreement with Landsea Homes Corp (NASDAQ:LSEA) in which the company will provide solar technology solutions to Landsea Homes across the nation. Moreover, homebuyers in Arizona, Florida, and Texas will also be offered to add this technology to their new homes.
On March 31, 2022, SunPower Corporation (NASDAQ:SPWR) hosted an analyst day in which it laid out its $1 billion capital plan. Morgan Stanley analyst Stephen Byrd pointed out that he sees multiple drivers for long-term margin improvement and long-term trends that will be profitable for SunPower Corporation (NASDAQ:SPWR) after looking at the company’s capital plan. Stephen Byrd reiterated an Equal Weight rating and a $21 price target on the company’s shares.
At the close of the fourth quarter of 2021, SunPower Corporation (NASDAQ:SPWR) was spotted on 20 hedge fund portfolios with stakes amounting to roughly $118.09 million. Of these, D E Shaw was the most prominent shareholder in SunPower Corporation (NASDAQ:SPWR), having stakes worth more than $67.4 million in the company.
Like Sunrun Inc. (NASDAQ:RUN), First Solar, Inc. (NASDAQ:FSLR), NextEra Energy, Inc. (NYSE:NEE), and Enphase Energy, Inc. (NASDAQ:ENPH), SunPower Corporation (NASDAQ:SPWR) is a renewable energy stock with significant upside potential.
9. Brookfield Renewable Partners L.P. (NYSE:BEP)
Number of Hedge Fund Holders: 21
Brookfield Renewable Partners L.P. (NYSE:BEP) owns a portfolio of renewable power generating facilities in North America, Colombia, Brazil, Europe, India, and China. This February, Brookfield Renewable Partners (NYSE:BEP) declared a quarterly cash dividend of $0.32 per share, up 5.3% from the prior dividend of $0.30. The dividend was payable by March 31, 2022, to shareholders of record on February 28, 2022. As of April 3, 2022, Brookfield Renewable Partners L.P. (NYSE:BEP) has a forward dividend yield of 3.12% and has gained 12.99% over the past six months.
On February 1, 2022, Brookfield Renewable Partners L.P. (NYSE:BEP) announced that it has entered into a 40-year escalating electricity purchase agreement with Lievre Power. Under the terms of the agreement Hydro-Quebec, the company’s Canadian subsidiary, will purchase the output of the Lievre hydroelectric facilities in Quebec with 263 megawatts of capacity. The facilities will generate roughly 1.5 terawatt-hours annually, the amount of energy used to power 90,000 homes.
Brookfield Renewable Partners L.P. (NYSE:BEP) is rising in popularity among analysts and investor circles. This April, BMO Capital analyst Ben Pham raised his price target on Brookfield Renewable Partners L.P. (NYSE:BEP) to $42 from $38 and maintained an Outperform rating on the shares. By the end of the fourth quarter of 2021, 21 hedge funds held stakes worth more than $234.36 million in the company. This is compared to 17 hedge funds in the previous quarter with stakes worth $145.16 million. The analyst and hedge fund sentiment for Brookfield Renewable Partners L.P. (NYSE:BEP) is positive.
As of March 21, 2022, Select Equity Group owns the most shares of Brookfield Renewable Partners L.P. (NYSE:BEP), making it the most prominent stakeholder in the company. The fund’s stakes amounted to $40.59 million, which makes up for 0.11% of its 13F portfolio.
8. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 23
Plug Power Inc. (NASDAQ:PLUG) is a leading provider of hydrogen fuel cell solutions in North America and internationally. This March, the company reported its revenues for the fiscal fourth quarter of 2021, which came to $161.91 million, outperforming market consensus by $4.12 million. As of April 3, 2022, Plug Power Inc. (NASDAQ:PLUG) has gained 16.53% over the past six months and boasts a market capitalization of $16.38 billion.
On March 28, 2022, Plug Power Inc. (NASDAQ:PLUG) announced that McDermott International Ltd., an engineering solutions provider for the energy industry, will be building two 500,000-gallon double-wall liquid hydrogen spheres for Plug Power Inc.’s (NASDAQ:PLUG) hydrogen production facility in New York. The production facility is expected to produce 45 metric tons of green liquid hydrogen per day, making it the largest green hydrogen facility in North America.
Plug Power Inc. (NASDAQ:PLUG) is rising in popularity among analysts and elite hedge funds alike. This January, Susquehanna analyst Biju Perincheril initiated coverage of Plug Power Inc. (NASDAQ:PLUG) and gave the stock a Positive rating with a $26 price target. The analyst sees significant upside for Plug Power Inc. (NASDAQ:PLUG) as its renewable hydrogen ecosystem develops over time, and cites the company’s ability to provide completely functional renewable-energy solutions from electrolyzers to hydrogen fuel cells. By the end of the fourth quarter of 2021, Plug Power Inc. (NASDAQ:PLUG) was spotted on 23 hedge fund portfolios that held stakes worth $281.98 million in the company.
As of the fourth quarter of 2021, DE Shaw was the largest stakeholder in Plug Power Inc. (NASDAQ:PLUG). The fund’s stakes amounted to $166.17 million, which covers 0.13% of its investment portfolio.
7. Sunnova Energy International Inc. (NYSE:NOVA)
Number of Hedge Fund Holders: 25
Sunnova Energy International Inc. (NYSE:NOVA) provides residential energy services in the United States. Last December, B. Riley analyst Christopher Souther named Sunnova Energy International Inc. (NYSE:NOVA) among the top solar and storage ideas heading into 2022. The analyst commented that the growth opportunities are compelling over the medium and long term as the global transition to cleaner energy and technologies accelerates. As of December 31, 2021, Sunnova Energy International Inc. (NYSE:NOVA) operates a fleet of residential solar energy systems with a power output of 1,140 megawatts.
On February 23, 2022, the company reported that its revenue for the fiscal fourth quarter of 2021 was valued at $65.02 million, up 70.99% year over year from $38.02 million. Moreover, this February Sunnova Energy International Inc. (NYSE:NOVA) announced that it is extending its strategic collaboration with Generac Holdings Inc. (NYSE:GNRC). This will enable Sunnova Energy International Inc. (NYSE:NOVA) to add its partner’s newly updated technology including energy storage units, standby home generators, microinverters, and load managers to its offerings.
By the end of the fourth quarter of 2021, Sunnova Energy International Inc. (NYSE:NOVA) was spotted on 25 hedge fund portfolios that had total stakes worth $149.91 million in the company. Of these, Electron Capital Partners is the most prominent shareholder in the company as of March 9, 2022. The fund’s stakes in Sunnova Energy International Inc. (NYSE:NOVA) were valued at roughly $38.15 million, representing 1.95% of Electron Capital Partners’ Q4 2021 investment portfolio.
6. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 25
Bloom Energy Corporation (NYSE:BE) manufactures and installs solid-oxide fuel cell systems that generate electricity on-site. This February, the company reported that its revenue for the fiscal fourth quarter of 2021 came to $342.47 million, up 37.33% year over year, and outperformed market consensus by $33.53 million. As of April 3, 2022, Bloom Energy Corporation (NYSE:BE) has gained 45.12% over the past six months and boasts a market capitalization of $4.35 billion.
The analyst and investor sentiment for Bloom Energy Corporation (NYSE:BE) is positive. Insider Monkey’s data shows that at the close of the fourth quarter of 2021, 25 hedge funds were bullish on Bloom Energy Corporation (NYSE:BE) and held stakes worth more than $92 million in the company. This is compared to 18 positions in the third quarter of 2021, with stakes of roughly $43 million.
On February 28, 2022, Susquehanna analyst Biju Perincheril upgraded Bloom Energy Corporation (NYSE:BE) to Positive from Neutral and raised his price target to $33 from $18, in light of the current geopolitical situation. The analyst commented that the current geopolitical tensions can be a key driver for hydrogen-fuel adoption in European and other markets.
As of March 24, 2022, Marshall Wace LLP was the dominating stakeholder in Bloom Energy Corporation (NYSE:BE) having stakes worth more than $24.6 million. The investment covers 0.04% of the fund’s Q4 2021 investment portfolio.
Investors are bullish on Bloom Energy Corporation (NYSE:BE). Other renewable energy stocks that have bullish investor sentiment include Sunrun Inc. (NASDAQ:RUN), First Solar, Inc. (NASDAQ:FSLR), NextEra Energy, Inc. (NYSE:NEE), and Enphase Energy, Inc. (NASDAQ:ENPH).
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Disclosure: None. 11 Best Renewable Energy Stocks to Buy Right Now is originally published on Insider Monkey.
