In this article, we will take a look at the 5 best wind energy and renewables stocks to buy in 2021. For a detailed analysis of these companies, go directly to the 10 Best Wind Energy and Renewables Stocks to Buy in 2021.
5. NextEra Energy, Inc. (NYSE: NEE)
Number of Hedge Fund Holders: 61
NextEra Energy, Inc. (NYSE: NEE) is a Florida-based power company that is placed fifth on our list of 10 best wind energy and renewables stocks to buy in 2021. It was founded in 1984. The company has a market cap of more than $146 billion and posted $18 billion in annual revenue last year. NextEra stock has returned more than 30% to investors over the course of the past twelve months. The firm serves more than 11 million people primarily in and around Florida. It focuses on renewable power generation facilities and battery storage systems.
NextEra Energy, Inc. (NYSE: NEE) reported quarterly earnings for the first quarter of 2021 on April 21. It posted a revenue of $3.7 billion, a 19% decrease compared to the revenue over the same period last year. Adjusted earnings stood at $1.3 billion, up from $1.1 billion a year ago.
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 13 million shares worth more than $1 billion.
4. Suncor Energy Inc. (NYSE: SU)
Number of Hedge Fund Holders: 25
Suncor Energy Inc. (NYSE: SU) is a Canada-based energy company founded in 1917. It is ranked fourth on our list of 10 best wind energy and renewables stocks to buy in 2021. Although the company is famous for crude production from oil sands, it also runs wind farms. It has energy assets in Asian countries as well. Suncor stock has returned more than 39% to investors over the past year. The firm has a market cap of more than $35 billion. The firm also markets petroleum and related products to consumers across Canada.
On May 3, Suncor Energy Inc. (NYSE: SU) reported earnings results for the first three months of 2021. The share price of the firm jumped more than 1% that day as it reported operating earnings of C$746 million, a significant improvement from operating losses of C$421 million over the same period last year.
At the end of the fourth quarter of 2020, 25 hedge funds in the database of Insider Monkey held stakes worth $686 million in the firm, up from 22 in the preceding quarter worth $559 million.
In the said letter, Brown Advisory spoke about Cimarex Energy Co (NYSE:XEC) and Suncor Energy Inc (NYSE:SU) stocks. Here is what Brown Advisory said:
“We eliminated our small holding in Cimarex Energy in favor of consolidating our oil-related investments by adding to existing holding Suncor Energy, which we believe is a stronger company to own with oil prices at a historic low.”
3. TPI Composites, Inc. (NASDAQ: TPIC)
Number of Hedge Fund Holders: 27
TPI Composites, Inc. (NASDAQ: TPIC) is an Arizona-based company that markets wind energy production equipment. The firm is ranked third on our list of 10 best wind energy and renewables stocks to buy in 2021 and was founded in 1968. TPI stock has returned more than 150% to investors over the past twelve months. TPI makes and sells wind blades, precision molding, and assembly systems for renewable power plants. It has business interests in the US, Mexico, Europe, and several parts of Asia.
On May 6, TPI Composites, Inc. (NASDAQ: TPIC) posted a revenue of more than $400 million for the first quarter of 2021, beating market estimates by more than $8.4 million. It also provided guidance for the 2021 fiscal year, expecting net sales of up to $1.85 billion and capital expenditures of up to $65 million.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm Greenvale Capital is a leading shareholder in the firm with 1.1 million shares worth more than $62 billion.
In the Q4 2020 Investor Letter, Baron Discovery Fund highlighted a few stocks and TPI Composites Inc (NASDAQ:TPIC) is one of them. Here is what Baron Discovery Fund said:
“TPI Composites, Inc., a manufacturer of composite blades for electricity generating wind turbines, and composite bodies for electric buses did very well in the quarter, with shares rising 82.3%. The company reported record revenue that grew 23.5% against a 50% year-over-year comparable, and double-digit cash flow margins for the first time in a year. Investors (including Baron Discovery Fund) have been waiting for this recovery since the end of 2019, when management took down 2020 numbers due to increased manufacturing line transitions (product retooling). After the guidance reduction we thought shares at $16 were a bargain, trading at 6.5 times 2020 cash flow and 4.7 times 2021 cash flow. They became more so after they fully bottomed in the mid-$9 range at the height of the pandemic in mid-March 2020 (trading at about 4 times and 3 times the same metrics). But our long-term perspective held and we added on weakness. This proved profitable, as shares ended the year at $52.78. At this price level, shares trade at about 12 times and 10 times our estimated 2021 and 2022 cash flow targets and we still see nice upside. The recovery is even more remarkable given that it’s been executed during the pandemic illustrating the strength of this management team. Management also hinted in the third quarter earnings call that it plans to increase its long-term targets based on the increasing expectations for annual wind capacity installations. We like the setup particularly given some nice macro tailwinds which include global stimulus with money earmarked for renewables, extended production tax credits, lowered wind energy production costs and the anticipation that the Biden administration will be more friendly to renewable energy. On top of the strength in the wind industry, we believe the company will continue building out its transportation business where it supplies composite parts for passenger EV and commercial trucking applications. TPI is seeing strong early traction with both production awards and pilot programs with major OEMs and we expect additional production contracts in the coming years.”
2. Tesla, Inc. (NASDAQ: TSLA)
Number of Hedge Fund Holders: 68
Tesla, Inc. (NASDAQ: TSLA) is a California-based automaker founded in 2003. It is placed second on our list of 10 best wind energy and renewables stocks to buy in 2021. The company has extensive interests in the clean energy business, primarily in the battery energy storage and solar power segments. Tesla stock has returned more than 300% to investors over the past year. The firm has a market cap of more than $640 billion and posted more than $31 billion in annual revenue in 2020.
On May 7, Tesla, Inc. (NASDAQ: TSLA) increased pricing on two of its famous cars, Model 3 and Model Y, amid strong demand and supply chain pressures. The company has also recently reported record vehicle deliveries for the first quarter, boosting share price to new highs.
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 energy firm. It is ranked first on our list of 10 best wind energy and renewables stocks to buy in 2021. The company is one of the largest renewable energy firms in the world with clean energy plants in North America, South America, Europe, and Asia. The company primarily generates electricity through wind, hydro, solar, and other clean generators. It owns and operates more than 100 wind farms. Brookfield stock has returned more than 36% to investors in the past year.
On May 4, Brookfield Renewable Partners L.P. (NYSE: BEP) posted quarterly earnings for the first quarter of 2021, reporting a revenue of more than $1 billion, down close to 3% year-on-year, but beating market estimates by more than $92 million.
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.
