In this article we will take a look at the 5 best energy stocks for 2021. For a detailed analysis of energy sector, go directly to the 10 Best Energy Stocks for 2021.
5. Plug Power Inc. (NASDAQ: PLUG)
Number of Hedge Fund Holders: 21
Plug Power Inc. (NASDAQ: PLUG) is a Latham-based firm that concentrates on the development of hydrogen fuel cell systems that can replace more conventional batteries in equipment and electric vehicles. These fuel cells are environment friendly compared to the conventional energy solutions. Some of the products marketed by the company include GenDrive, a hydrogen fueled PEM fuel cell system for electric vehicles, and GenFuel, a hydrogen fueling delivery, generation, storage, and dispensing system.
Plug Power Inc. (NASDAQ: PLUG) stock was picked by investment advisory Evercore as one of top five picks for the clean energy transition planned by the US government. The advisory gave the firm an Outperform rating with a price target of $42, implying a 66% upside potential.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm D E Shaw is a leading shareholder in the firm with 15.3 million shares worth more than $522 million.
4. Exxon Mobil Corporation (NYSE: XOM)
Number of Hedge Fund Holders: 63
Exxon Mobil Corporation (NYSE: XOM) is a Texas-based multinational oil and gas firm. It is ranked fourth on our list of 10 best energy stocks for 2021 and was founded in 1870. The firm is one of the largest energy firms in the world and operates more than 22,000 net operated wells that have proven oil and gas reserves. It has operations in more than 21 countries with oil refineries in most of them. It has a refining capacity of 6.3 million barrels of oil per day that makes it one of the largest oil refining companies globally.
Exxon Mobil Corporation (NYSE: XOM) posted quarterly results last month and reported the first profits in five quarters and total revenues of $59 billion, up more than 5% from the same period last year. The firm said the freezing weather in Texas earlier this year had resulted in $600 million in earnings losses for the firm because of the decreased production and sales. However, the company forecast a bright outlook for the rest of the fiscal year as oil prices stabilize.
At the end of the fourth quarter of 2020, 63 hedge funds in the database of Insider Monkey held stakes worth $2.2 billion in the firm, up from 52 in the preceding quarter worth $1.3 billion.
First Eagle Investment Management, in their Q1 2021 investor letter, mentioned Exxon Mobil Corporation (NYSE: XOM). Here is what First Eagle Investment Management has to say about Exxon Mobil Corporation in their letter:
“Leading contributors in the First Eagle Global Fund this quarter included Exxon Mobil Corporation. Recovering oil prices on improvements in demand for crude and other distillates helped fuel strong performance across the energy complex, including shares of Exxon Mobil. The company’s financial results have improved markedly from the Covid-related demand shocks in 2020, helping ease concerns about the sustainability of Exxon’s dividend, which is among the largest in the S&P 500 Index. In addition, Exxon has reiterated its commitment to reducing capital expenditures, which we believe should further bolster the resilience of its cash flows against future demand slowdowns.”
3. Royal Dutch Shell plc (NYSE: RDS-A)
Number of Hedge Fund Holders: 34
Royal Dutch Shell plc (NYSE: RDS-A) is a Netherlands-based oil and gas firm that was founded in 1907. It is placed third on our list of 10 best energy stocks for 2021. The firm markets natural gas, liquefied natural gas, crude oil, electricity, and other energy solutions for vehicles and marine vessels. The company has said it plans to reach zero carbon emissions in the next three decades after it came under fire for being identified as the seventh-largest corporate greenhouse gas emitter in the world between 1988-2015 by CDP Carbon Majors. It has a market cap of over $140 billion and posted more than $180 billion in annual revenue in 2020.
Royal Dutch Shell plc (NYSE: RDS-A) announced last month that it was partnering with a Singaporean firm to research the use of hydrogen fuel cells for powering marine vessels. The company said that the feasibility study for the project would be the first step towards the wider adoption of the clean energy system by the energy sector.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in the firm with 16 million shares worth more than $565 million.
2. Tesla, Inc. (NASDAQ: TSLA)
Number of Hedge Fund Holders: 68
Tesla, Inc. (NASDAQ: TSLA) is a San Carlos-based electric vehicle maker with significant stakes in the clean energy business. It is placed second on our list of 10 best energy stocks for 2021 and was founded in 2003. The company is owned by eccentric billionaire Elon Musk who also runs several technology companies. Investment advisory Canaccord in April said that it believes Tesla is set to increase spending on clean energy storage and power generation with an aim to attack and conquer the trillion dollar energy market across the world.
Tesla, Inc. could produce $8 billion in revenues from energy generation alone within the next three years, an analyst at Canaccord has forecast. With EV sales already booming, Tesla stock, already one of the most expensive on the market, could rise even higher.
At the end of the fourth quarter of 2020, 68 hedge funds in the database of Insider Monkey held stakes worth $12.3 billion in the firm, up from 67 in the preceding quarter worth $8.1 billion.
1. Brookfield Renewable Partners L.P. (NYSE: BEP)
Number of Hedge Fund Holders: 20
Brookfield Renewable Partners L.P. (NYSE: BEP) is a Bermuda-based company that owns and operates clean energy power generation plants in the United States, Canada, Colombia, Brazil, Europe, India, and China. It was founded in the 1890s and is placed first on our list of 10 best energy stocks for 2021. The firm runs several hydroelectric plants, more than 100 wind farms, over 550 solar facilities, as well as other clean energy businesses. The company is most famous for being one of the oldest hydroelectric power generation firms globally.
Brookfield Renewable Partners L.P. (NYSE: BEP) announced on March 30 that it was partnering with Plug Power for the development of a hydrogen plant in Pennsylvania. Construction on the project is set to begin in 2022 and the plan will produce 15 metric tons of hydrogen daily with zero carbon emissions.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Ecofin Ltd is a leading shareholder in the firm with 280,135 shares worth more than $12 million.
You can also take a peek at 10 Best Travel Stocks to Buy Right Now, and 10 Best Automotive Stocks to Invest in Now.
