12 Best Alternative Energy Stocks To Buy Now

Published on November 10, 2022 at 3:33 pm by Hamna Asim in Hedge Funds, News

In this article, we discuss 12 best alternative energy stocks to buy now. If you want to see more stocks in this selection, check out 5 Best Alternative Energy Stocks To Buy Now.

Mark Carney, the former Bank of England governor, told Bloomberg on November 8 that renewable energy assets are set for explosive growth, since they are the solution to both energy security risks and climate change. Carney is also a vice chair at Brookfield Asset Management, and he noted that smart investors are following “an absolute wall of opportunity in just rolling out clean energy at scale.”

Europe is facing a harsh winter, and the global leaders are on the fence about how to distribute the capital in energy markets. Some advocate that investors need to pour more money into oil, gas, and coal to increase energy supplies swiftly. Others argue that it is high time to boost spending on renewables as the world is already battling with global climate change.

At the beginning of November, the United States and the United Arab Emirates announced a renewable energy pact which could result in $100 billion of investments globally. The partnership is developed to create 100 gigawatts of renewable power by 2035, which is about twice the capacity that was generated in Europe and North America combined in 2020. To benefit from the boom in the alternative energy sector, some of the best stocks to buy include NextEra Energy, Inc. (NYSE:NEE), Enphase Energy, Inc. (NASDAQ:ENPH), and First Solar, Inc. (NASDAQ:FSLR).

Our Methodology

We selected the following clean energy stocks based on growth fundamentals, positive analyst coverage, and strong market visibility. We have arranged the list according to the number of hedge fund holders in each firm, tracked by Insider Monkey as of the second quarter of 2022.

Best Alternative Energy Stocks To Buy Now

12. FuelCell Energy, Inc. (NASDAQ:FCEL)

Number of Hedge Fund Holders: 10

FuelCell Energy, Inc. (NASDAQ:FCEL) is a Connecticut-based company specializing in fuel cell technology, which is an alternative to conventional combustion-based power generation. FuelCell Energy, Inc. (NASDAQ:FCEL) operates in the renewable energy, fuel cells, carbon capture, and energy storage industries.

Canaccord analyst George Gianarikas on October 21 initiated coverage of FuelCell Energy, Inc. (NASDAQ:FCEL) with a Hold rating and a $3.25 price target. FuelCell Energy, Inc. (NASDAQ:FCEL)’s management embarked on “a rather aggressive and transformational turnaround in 2019” and appears to be well positioned to benefit from the increased global interest in hydrogen, said the analyst. While he is bullish on fuel cell technology, the analyst needs to see more orders before becoming incrementally positive.

According to Insider Monkey’s second quarter database, 10 hedge funds were long FuelCell Energy, Inc. (NASDAQ:FCEL), compared to 16 funds in the prior quarter. D E Shaw held the leading stake in the company, comprising 8.3 million shares worth $31 million.

Like NextEra Energy, Inc. (NYSE:NEE), Enphase Energy, Inc. (NASDAQ:ENPH), and First Solar, Inc. (NASDAQ:FSLR), FuelCell Energy, Inc. (NASDAQ:FCEL) is one of the best clean energy stocks to invest in.

11. JinkoSolar Holding Co., Ltd. (NYSE:JKS)

Number of Hedge Fund Holders: 16

JinkoSolar Holding Co., Ltd. (NYSE:JKS) is a solar panel manufacturer headquartered in Shanghai, China. It is one of the most popular clean energy stocks on Wall Street. On October 28, JinkoSolar Holding Co., Ltd. (NYSE:JKS) posted a Q3 GAAP of $0.90 and a revenue of $2.74 billion, topping market estimates by $0.38 and $140 million, respectively. Revenue over the period climbed 106% on a year-over-year basis. The company sees strong demand growth in the global market.

On October 31, Roth Capital analyst Philip Shen reiterated a Neutral rating on JinkoSolar Holding Co., Ltd. (NYSE:JKS) and lowered the price target on the shares to $50 from $58 after the company posted a robust Q3 and guided to a better-than-expected Q4. Despite the U.S. challenges, JinkoSolar Holding Co., Ltd. (NYSE:JKS) is executing comparatively well in Europe and India, the analyst noted.

According to Insider Monkey’s Q2 data, 16 hedge funds were long JinkoSolar Holding Co., Ltd. (NYSE:JKS), compared to 10 funds in the prior quarter. Lei Zhang’s Hillhouse Capital Management is the largest stakeholder of the company, with 1.14 million shares worth about $79 million.

10. Ormat Technologies, Inc. (NYSE:ORA)

Number of Hedge Fund Holders: 17

Ormat Technologies, Inc. (NYSE:ORA) is a Nevada-based company that specializes in alternative and renewable geothermal energy technology. It is one of the premier clean energy stocks to monitor in the shift to alternative sources of energy. On November 2, Ormat Technologies, Inc. (NYSE:ORA) reported a Q3 non-GAAP EPS of $0.33 and a revenue of $175.9 million, outperforming Wall Street consensus by $0.07 and $6.68 million, respectively. For full-year 2022, Ormat Technologies, Inc. (NYSE:ORA) expects total revenues of between $720 million and $735 million, up from the prior outlook of $710 million to $735 million. The consensus revenue estimate is $719.25 million.

On October 20, Citi analyst Ryan Levine initiated coverage of Ormat Technologies, Inc. (NYSE:ORA) with a Neutral rating and a $91 price target. While he calls Ormat Technologies, Inc. (NYSE:ORA) “a premium global geothermal story” developing new geothermal, battery, and solar projects, the analyst remains concerned about longer-term threats.

According to Insider Monkey’s data, 17 hedge funds were bullish on Ormat Technologies, Inc. (NYSE:ORA) at the end of the second quarter of 2022, compared to 16 funds in the preceding quarter. Ian Simm’s Impax Asset Management is the biggest stakeholder of the company, with more than 3 million shares worth $238 million.

9. Brookfield Renewable Partners L.P. (NYSE:BEP)

Number of Hedge Fund Holders: 19

Brookfield Renewable Partners L.P. (NYSE:BEP) owns and operates renewable power assets including hydroelectric plants, wind farms, solar facilities, and energy storage facilities. On November 4, Brookfield Renewable Partners L.P. (NYSE:BEP) declared a $0.32 per share quarterly dividend, in line with previous. The dividend is payable on December 30, to shareholders of record on November 30. Brookfield Renewable Partners L.P. (NYSE:BEP) also posted market-beating Q3 results.

On October 18, TD Securities analyst Sean Steuart assumed coverage of Brookfield Renewable Partners L.P. (NYSE:BEP) with a Buy rating and a $41 price target. The partnership with Cameco to acquire Westinghouse Electric, one of the world’s leading nuclear service providers, expands Brookfield Renewable Partners L.P. (NYSE:BEP) more rapidly into broader energy transition segments, the analyst told investors in a research note.

According to Insider Monkey’s data, 19 hedge funds were long Brookfield Renewable Partners L.P. (NYSE:BEP) at the end of Q2 2022, compared to 18 funds in the last quarter. Select Equity Group held the biggest stake in the company, comprising 2.5 million shares worth $90 million.

Here is what ClearBridge Investments Global Infrastructure Income Strategy has to say about Brookfield Renewable Partners L.P. (NYSE:BEP) in its Q1 2022 investor letter:

“Brookfield Renewable 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.”

8. SunPower Corporation (NASDAQ:SPWR)

Number of Hedge Fund Holders: 21

SunPower Corporation (NASDAQ:SPWR) is a California-based company focused on developing photovoltaic solar energy generation systems and battery energy storage products for residential customers. SunPower Corporation (NASDAQ:SPWR) is one of the premier clean energy stocks to buy now. On November 8, the company reported a Q3 non-GAAP EPS of $0.13 and a revenue of $475.71 million, exceeding market estimates by $0.05 and $48.04 million, respectively.

On November 10, Credit Suisse analyst Maheep Mandloi upgraded SunPower Corporation (NASDAQ:SPWR) to Neutral from Underperform with a price target of $17, down from $21. The analyst cited valuation for the upgrade, with the stock trading in line with the updated price target. In addition, SunPower Corporation (NASDAQ:SPWR) management acknowledged and addressed primary investor concerns on the earnings call around leases, California, and Maxeon, the analyst wrote in a research note. He was more constructive on the stock after the earnings call.

Among the hedge funds tracked by Insider Monkey, 21 funds reported owning stakes in SunPower Corporation (NASDAQ:SPWR) at the end of Q2 2022, and D E Shaw held the leading position in the company, with 2.5 million shares worth $40 million.

7. Bloom Energy Corporation (NYSE:BE)

Number of Hedge Fund Holders: 24

Bloom Energy Corporation (NYSE:BE) is a California-based company that manufactures and markets solid oxide fuel cells that produce electricity on-site. On November 4, Bloom Energy Corporation (NYSE:BE) posted a Q3 revenue of $292.3 million, up 41.1% year-over-year, beating estimates by $17.38 million. The stock soared about 12% after the company reported Q3 results. Bloom Energy Corporation (NYSE:BE) is one of the best clean energy stocks to invest in.

On October 19, Jefferies analyst Sam Burwell initiated coverage of Bloom Energy Corporation (NYSE:BE) with a Buy rating and a $29 price target. He believes the “Option Value” of energy is up again, driven by a constrained capital cycle.

According to Insider Monkey’s Q2 data, 24 hedge funds were bullish on Bloom Energy Corporation (NYSE:BE), compared to 29 funds in the prior quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is a prominent position holder in the company, with more than 1 million shares worth $17 million.

6. Sunnova Energy International Inc. (NYSE:NOVA)

Number of Hedge Fund Holders: 25

Sunnova Energy International Inc. (NYSE:NOVA) is a Texas-based company that provides residential solar energy systems in the United States. Sunnova Energy International Inc. (NYSE:NOVA) reported a Q3 revenue of $149.36 million, up 116.8% from the prior-year quarter, outperforming estimates by $16.43 million. The company added 21,800 customers in the third quarter of 2022, bringing the total customer count to 246,600 as of September 30, 2022. Sunnova Energy International Inc. (NYSE:NOVA) expects growth to increase further in 2023 due to higher demand for cheaper, more dependable energy services.

On October 25, B. Riley analyst Christopher Souther reiterated a Buy rating on Sunnova Energy International Inc. (NYSE:NOVA) but trimmed the price target on the shares to $30 from $35. The analyst cited lower principal and loan interest in 2023 for the target drop amid the higher interest rate environment.

According to Insider Monkey’s data, 25 hedge funds were long Sunnova Energy International Inc. (NYSE:NOVA) at the end of Q2 2022, compared to 26 funds in the preceding quarter. Jos Shaver’s Electron Capital Partners is a prominent stakeholder of the company, with over 3 million shares worth $56.5 million.

In addition to NextEra Energy, Inc. (NYSE:NEE), Enphase Energy, Inc. (NASDAQ:ENPH), and First Solar, Inc. (NASDAQ:FSLR), Sunnova Energy International Inc. (NYSE:NOVA) is one of the premier alternative energy stocks to invest in.

Here is what the Clearbridge Investments Small Cap Strategy had to say about Sunnova Energy International Inc. (NYSE:NOVA) in its Q1 2022 investor letter:

“We initiated a new position in Sunnova (NYSE:NOVA), in the energy sector. Sunnova is a residential solar and energy storage company that enables adoption through a network of installers with options for financing, service and broader home energy management. Rising interest rates and solar energy supply constraints weighed on the stock’s performance in the fourth quarter of 2021 but created a compelling valuation opportunity to buy this business when the market was embedding low growth expectations. We believe Sunnova will deliver value accretive growth for a much longer time, with its downside limited by the long-term, fixed-rate, high- quality contracts it has with customers.”

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