In this article, we discuss the 5 best alternative fuel stocks to buy now. If you want to read our detailed analysis of the fuel sector, go directly to the 10 Best Alternative Fuel Stocks to Buy Now.
5. Solaredge Technologies, Inc. (NASDAQ: SEDG)
Number of Hedge Fund Holders: 31
Total Value of Hedge Fund Holdings: $358 Million
The 5th best alternative fuel stock to buy now is Solaredge Technologies, Inc. (NASDAQ:SEDG). The California-based power optimizer and solar inverter shipped over 65.3 million power optimizers and more than 1.9 million PV installations. Solaredge Technologies, Inc. (NASDAQ:SEDG) has a market cap of $10.6 billion. The company’s total revenue came in at $405.5 million in the first quarter of 2021. Shares of SEDG surged 81% over the last twelve months.
There were 28 hedge funds that reported owning stakes in Solaredge Technologies, Inc. (NASDAQ:SEDG) at the end of the fourth quarter, down from 31 funds a quarter earlier. The total value of these stakes at the end of Q4 is $358 million.
Richie Capital Group mentioned that Solaredge Technologies, Inc. (NASDAQ:SEDG) was one of their biggest skeptics in its 1Q 2021 investor letter:
“Our biggest detractors for the quarter included SolarEdge Technologies (SEDG – down 11.2%) – The Smart Energy solar company declined during the quarter along with most other solar energy stocks due to concerns over higher interest rates. Higher interest rates will make it more expensive for businesses and consumers to borrow money for residential and commercial solar projects. We expect interest rates to be somewhat of a headwind for years to come. However, the stronger underlying trends are in their favor. We expect SEDG to be a net winner from the Biden Administration’s infrastructure plan which focuses on Clean Energy.”
4. Evergy, Inc. (NYSE: EVRG)
Number of Hedge Fund Holders: 33
Total Value of Hedge Fund Holdings: $1.40 Billion
Ranking 4th in our list of the 10 best alternative fuel stocks to buy now is Evergy, Inc. (NYSE:EVRG). The Missouri-based multinational clean energy provider has over 1.6 million customers in Kansas. Evergy, Inc. (NYSE:EVRG) has a market cap of $14.4 billion and total revenue in the first quarter of 2021 of $1.61 billion. In April, Wolfe Research upgraded Evergy to Outperform from Peer Perform, with a $69 price target.
There were 33 hedge funds that reported owning stakes in Evergy, Inc. (NYSE:EVRG) at the end of the fourth quarter, down from 37 funds a quarter earlier. The total value of these stakes at the end of Q4 is $1.40 billion.
3. First Solar, Inc. (NASDAQ: FSLR)
Number of Hedge Fund Holders: 34
Total Value of Hedge Fund Holdings: 406 Million
Ranking 3nd in our list of 10 best alternative fuel stocks to buy now is First Solar, Inc. (NASDAQ:FSLR). The Arizona-based solar panel manufactures and provides utility-scale PV power plants. Earlier this month, the company began a partnership with Nel Hydrogen Electrolyser, a division of Nel ASA, to establish a supervisory monitoring and data acquisition system for automated power plant control.
First Solar, Inc. (NASDAQ:FSLR) has a market cap of $7.39 billion. The company’s net sales in the first quarter of 2021 came in at $803 million. Shares of FSLR jumped 84% over the past twelve months. In May, B of A Securities upgraded First Solar to Neutral and announced a price target of $86.
There were 34 hedge funds that reported owning stakes in First Solar, Inc. (NASDAQ:FSLR) at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $406 million.
White Brook Capital, in their Q1 2021 investor letter, mentioned First Solar, Inc. (NASDAQ: FSLR) and Itron, Inc. (NASDAQ: ITRI). Here is what White Brook Capital has to say in its letter:
“First Solar (FSLR) and Itron (ITRI), both of which I’ve written about in past In Focus sections were long-term positions that were sold as their prices exceeded price targets. Both are solid companies that remain on my watchlist, but the opportunity cost of not investing in other potential investments exceeded their potential mid-term returns.”
2. Enphase Energy, Inc. (NASDAQ: ENPH)
Number of Hedge Fund Holders: 48
Total Value of Hedge Fund Holdings: $988 Million
California-based energy technology company Enphase Energy, Inc. (NASDAQ:ENPH) ranks 2nd in our list of 10 best alternative fuel stocks to buy now. The company was founded in 2006 and is engaged in planning, creating, manufacturing, and retailing home energy solutions for the solar photovoltaic industry. In April, transport operator Transdev announced they selected Enphase to deploy microinverters for the first solar-powered public transport in Australia. On May 13, Capital One initiated coverage on Enphase Energy with an Overweight rating and announced a price target of $175.
Enphase Energy, Inc. (NASDAQ:ENPH) has a market cap of $15.5 billion. The company’s quarterly revenue in the first quarter of 2021 came in at $301.8 million. Shares of ENPH increased 105% over the past twelve months.
There were 48 hedge funds that reported owning stakes in Enphase Energy, Inc. (NASDAQ:ENPH) at the end of the fourth quarter, down from 42 funds a quarter earlier. The total value of these stakes at the end of Q4 is $988 million.
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.
