5 Best Alternative Fuel Stocks to Buy Now

1. Equinor ASA (NYSE: EQNR)

Number of Hedge Fund Holders: 18
Total Value of Hedge Fund Holdings: $238 Million

Norway-based oil and gas exploration company Equinor ASA (NYSE:EQNR) is one of the best alternative fuel stocks to buy now. Equinor ASA operates in over 30 countries worldwide. At the beginning of the year, the company finalized an agreement with BP plc (NYSE:BP) to develop around 4.4 gigawatts (GW) through the New York Empire Wind and Beacon Wind coast projects.

Equinor ASA (NYSE:EQNR) has a market cap of $68.8 billion. The company’s adjusted earnings in the first quarter of 2021 came in at $5.47 billion. Shares of EQNR surged 61% over the past twelve months. On April 30, Kepler Cheuvreux downgraded Equinor ASA to Hold.

There were 18 hedge funds that reported owning stakes in Equinor ASA (NYSE:EQNR) at the end of the fourth quarter, down from 20 funds a quarter earlier. The total value of these stakes at the end of Q4 is $238 million. Unlike Tesla, Inc. (NASDAQ:TSLA) and Toyota Motor Corporation (NYSE:TM), EQNR is one of the affordable stocks to buy to gain exposure to the alternative fuels market.

In one of its investor letters, Massif Capital highlighted a few stocks and Equinor Asa (NYSE:EQNR) is one of them. Here is what Massif Capital said:

“Equinor (EQNX) serves as a strong ballast position with a large resource base, strong balance sheet, and the added benefit of an appealing dividend that will almost certainly be reconsidered by management, but is generally secure. Equnior is also driving its business towards a more sustainable and less carbon-intensive model. Equinor is developing and operating some of the lowest carbon-intensive oil reserves in the world. This signficantly reduces their risk of future stranded assets. Meeting the terms of the UN Paris Agreement would leave 29% of oil reserves stranded and eliminate roughly $360 billion in the value of the top 13 international oil companies by reserves. Equivalent to greater than 1/6th of their total enterprise value. We believe that EQNR has limited downside risk in this regard and will play an essential role in the evolving energy landscape as it burnishes its green credentials with interests in offshore wind.”

You can also take a peek at 10 Best Wind Energy and Renewables Stocks to Buy in 2021 and 10 Best Video Conferencing Stocks to Buy.

Follow Insider Monkey on Twitter