In this article, we discuss the 5 best green energy stocks to buy. If you want to read our analysis of energy stocks, go directly to 11 Best Green Energy Stocks To Buy.
5. Brookfield Renewable Corporation (NYSE:BEPC)
Stock Price Change Over the Past Six Months as of November 17: -9%
Brookfield Renewable Corporation (NYSE:BEPC) is one of the biggest publicly listed renewable power companies.
The decline in the cost of batteries for energy storage along with solar panels and wind turbines will continue to improve the profit margins of Brookfield Renewable Corporation (NYSE:BEPC). The management intends to increase its cash distribution by 5% to 9% annually and promises 12% to 15% of total returns to investors in the long run. Brookfield Renewable Corporation (NYSE:BEPC) has compounded its dividend by 6% annually from 2013 to 2022. The company’s revenue outlook is also certain, as its average power purchase agreement (PPA) is for 14 years.
Furthermore, Brookfield Renewable Corporation (NYSE:BEPC) intends to achieve funds from operations (FFO) growth of 10% – 20% by 2026 by employing inflation escalation clauses in the PPAs along with strategies to enhance margins. Brookfield Renewable Corporation (NYSE:BEPC) plans to expand its operations through mergers and acquisitions (M&A).
4. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 29
Stock Price Change Over the Past Six Months as of November 17: +43%
Bloom Energy Corporation (NYSE:BE) is a San Jose, California-based manufacturer and seller of solid oxide fuel cells that produce electricity on-site.
Sophie Karp at KeyBanc resumed coverage on Bloom Energy Corporation (NYSE:BE) with an Overweight rating and a target price of $30 in a research note issued to investors on June 1. Bloom Energy Corporation (NYSE:BE) has an attractive growth outlook and an opportunity to achieve an inflection point for its margins. The company also offers upside through its electrolyzer optionality.
Although Bloom Energy Corporation (NYSE:BE) missed gross margin expectations for Q1 2022, it is expected to meet the estimates for 2022. A Bloomberg report revealed that Ferrari NV would be utilizing Bloom Energy Corporation’s (NYSE:BE) fuel cells to lower emissions. The installation would be at Ferrari’s Italian manufacturing center and act as an entry point for Bloom Energy Corporation (NYSE:BE) in the European region. The company also reported solid Q1 2022 revenues due to strong deliveries to its strategic partner in South Korea.
Bloom Energy Corporation (NYSE:BE) was held by 29 hedge funds at the end of Q1 2022.
3. First Solar, Inc. (NASDAQ:FSLR)
Number of Hedge Fund Holders: 35
Stock Price Change Over the Past Six Months as of November 17: +142%
First Solar, Inc. (NASDAQ:FSLR) is a Tempe, Arizona-based manufacturer of solar panels and has established grid-connected PV power plants globally. The company is expected to be a beneficiary of favorable policies adopted by the US government regarding solar panels.
First Solar, Inc. (NASDAQ:FSLR) has two new plants under construction that will be functional by 2023. These plants will begin to manufacture the next-generation Series 7 panels. One of these plants, located in Ohio, has a capacity of 3.3 GW and has cost the company $680 million. This will be the biggest fully integrated solar PV facility outside China. First Solar, Inc. (NASDAQ:FSLR) also anticipates the completion of a 3 GW plant in Tamil Nadu, India, by the second half of 2023.
Out of the 912 hedge funds in Insider Monkey’s database, 35 funds held a stake in First Solar, Inc. (NASDAQ:FSLR) as of Q1 2022.
2. Canadian Solar Inc. (NASDAQ:CSIQ)
Number of Hedge Fund Holders: 15
Stock Price Change Over the Past Six Months as of November 17: +36%
Canadian Solar Inc. (NASDAQ:CSIQ) is a Canadian manufacturer of solar PV modules and operates large-scale solar projects.
The company intends to achieve 35% growth in sales during 2022. Canadian Solar Inc. (NASDAQ:CSIQ) has a healthy balance sheet with $870 million in cash, total assets of $7.4 billion, and $5.2 billion in liabilities. The global solar installations are expected to grow at a compound annual growth rate (CAGR) of 14% from 2022 to 2026. Canadian Solar Inc. (NASDAQ:CSIQ) also has a solid battery storage business that can grow and contribute significantly to the top line. Moreover, Canadian Solar Inc. (NASDAQ:CSIQ) is in the process of having an IPO on the Shanghai Stock Exchange (SSE) to unlock the potential of the Chinese market.
As of Q1 2022, Canadian Solar Inc. (NASDAQ:CSIQ) was held by 15 hedge funds.
1. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Number of Hedge Fund Holders as of Q1: 47
Stock Price Change Over the Past Six Months as of November 17: +21%
SolarEdge Technologies, Inc. (NASDAQ:SEDG) is an Israeli producer and seller of solar inverters for PV arrays and energy generation monitoring software.
In a note issued to investors on June 2, Colin Rusch at Oppenheimer upgraded SolarEdge Technologies, Inc. (NASDAQ:SEDG) stock from a Perform to an Outperform rating and gave it a target price of $334. Rusch thinks that the company is in a highly defensible position and moving towards healthy growth. He further stated that the increase in natural gas prices in Europe following the start of the conflict between Russia and Ukraine has made the “solar plus storage economics” attractive for consumers in the US and Europe.
Here’s what ClearBridge Investments said about SolarEdge Technologies, Inc. (NASDAQ:SEDG) in its Q1 2022 investor letter:
“SolarEdge Technologies (NASDAQ:SEDG) is a key solar holding that should be able to take advantage of greater incentives for solar installations in many geographies. The company was also a strong contributor for the quarter, overcoming pressures of a higher discount rate on their strong projected future earnings, raw material inflation, and supply chain challenges as their long-term value was reaffirmed.”
As of Q1 2022, 47 hedge funds reported owning a stake in SolarEdge Technologies, Inc. (NASDAQ:SEDG).
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