In this article, we discuss the 10 green energy stocks that analysts are recommending for the future. If you want to skip our detailed analysis of these stocks, go directly to Analysts Are Recommending These 5 Green Energy Stocks for the Future.
Green energy companies are working hard on technological innovation and new financing methods to make clean energy more accessible for people across the globe. Governmental policies and activist hedge funds are playing their part in the clean energy revolution as well. According to a report from S&P Global Market Intelligence, a record number of solar and wind projects will come online in the United States in 2022 as the focus gradually shifts to the companies that are being left behind in this clean energy boom.
Richard Sansom, a senior executive at S&P Global Market Intelligence, believes that 2022 will be a “record year for renewable energy development” as regulators and utilities adapt to new carbon reduction standards. S&P estimates that 44 GW of solar, 27 GW of wind, and 8 GW of battery storage will be installed in the US in 2022. The US government has allocated over $63 billion to upgrade the utilities infrastructure of the country to bring it up to modern standards, spurring investments in the neglected sector of the economy.
Some of the top clean energy stocks that analysts are recommending include Tesla, Inc. (NASDAQ:TSLA), General Electric Company (NYSE:GE), and First Solar, Inc. (NASDAQ:FSLR), among others discussed in detail below.
Our Methodology
The companies that operate in the clean energy sector and have been given positive analyst reviews in the past few weeks were selected for the list. Data from around 900 elite hedge funds tracked by Insider Monkey was used to identify the number of hedge funds that hold stakes in each firm.
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Analysts Are Recommending These Green Energy Stocks for the Future
10. Renewable Energy Group, Inc. (NASDAQ:REGI)
Number of Hedge Fund Holders: 16
Renewable Energy Group, Inc. (NASDAQ:REGI) provides lower carbon transportation fuels. Elite hedge funds hold large stakes in the company. Among the hedge funds being tracked by Insider Monkey, Hong Kong-based investment firm Sylebra Capital Management is a leading shareholder in Renewable Energy Group, Inc. (NASDAQ:REGI) with 5.3 million shares worth more than $41 million.
On January 5, BWS Financial analyst Hamed Khorsand maintained a Buy rating on Renewable Energy Group, Inc. (NASDAQ:REGI) stock with a price target of $100, noting that the purchase of Amber Resources by the firm would add “more downstream gallons” to the revenue mix.
Just like Tesla, Inc. (NASDAQ:TSLA), General Electric Company (NYSE:GE), and First Solar, Inc. (NASDAQ:FSLR), Renewable Energy Group, Inc. (NASDAQ:REGI) is one of the stocks that hedge funds are buying.
In its Q3 2021 investor letter, Hazelton Capital Partners highlighted a few stocks and Renewable Energy Group, Inc. (NASDAQ:REGI) was one of them. Here is what the fund said:
“Since the beginning of the year, Renewable Energy Group’s share price has declined over 35% and nearly 60% since February when Hazelton Capital Partners cut its position in half. During the 3rd quarter, Hazelton Capital Partners repurchased another tranche, returning REGI to the Fund’s largest portfolio holding with a share count greater than where the position started the year. Renewable Energy Group, Inc. (NASDAQ:REGI) continues to execute well in a market where supply and demand pressures remain both dynamic and uncertain. Beneath the veneer of a company that has a track record of meeting/beating its revenue and profit guidance, lies a management team whose main focus is on its supply chain and logistic operations. Renewable Energy Group, Inc. (NASDAQ:REGI) leverages its competitive edge at both procuring cheap feedstocks and delivering its refined biodiesel & renewable diesel to the highest value markets while growing downstream opportunities. The company recently announced partnerships with both GoodFuels, which supplies biofuels to the marine industry and Canadian National Railway. Both companies are looking to expand biodiesel into their fuel mix to reduce their greenhouse gas emissions.
In October of 2021, Renewable Energy Group, Inc. (NASDAQ:REGI) broke ground on its 250 million gallon/year (mmgy) renewable diesel refinery expansion at its Geismar, Louisiana refinery. The $950 million project is expected to come online by 2023, achieving a full run rate by 2024. With debt of $550 million and a net cash position of roughly $500 million, REGI’s balance sheet is prepared for the upcoming expansion. About 80% of the long lead items have been procured, and their prices locked in. The construction costs will be spread out over the upcoming years, with 15% of the total construction costs hitting in 2021, 45% in 2022, and the remainder in 2023. The nameplate capacity of the new refinery is 250mmgy but given that all of REGI’s refineries have an effective capacity that exceeds their nameplate, one can expect that Geismar will be producing over 400mmgy (Geismar ist refinery effective capacity should benefit from site improvements as well). That will greatly change Renewable Energy Group’s renewable diesel mix from 17% to 46% of total production and have a meaningful impact on the company’s future margins and cash flows.”
9. Brookfield Renewable Partners L.P. (NYSE:BEP)
Number of Hedge Fund Holders: 21
Brookfield Renewable Partners L.P. (NYSE:BEP) owns and runs renewable power generating facilities. On January 18, National Bank analyst Rupert Merer upgraded the stock to Outperform from Sector Perform with a price target of $38, noting the firm had sufficient liquidity to hit capital deployment targets and the growth profile was also improving.
Top hedge funds are also bullish on Brookfield Renewable Partners L.P. (NYSE:BEP) stock. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Select Equity Group is a leading shareholder in Brookfield Renewable Partners L.P. (NYSE:BEP) with 1.1 million shares worth more than $40 million.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Brookfield Renewable Partners L.P. (NYSE:BEP) was one of them. Here is what the fund said:
“U.S. renewables utility Brookfield Renewable Partners L.P. (NYSE:BEP) was another detractor. Brookfield Renewable Partners L.P. (NYSE:BEP) is a pure-play renewables operator and developer headquartered in Canada and domiciled in the U.S., focused on international hydro, solar, wind and storage technology. As more private and public institutions announce ambitious carbon reduction initiatives, Brookfield Renewable’s globally diversified, multi-technology renewables business makes it an attractive partner. Its development pipeline stands at 18,000 megawatts, providing confidence the company can meet its targeted double-digit cash flow growth through to 2025. Shares moderated amid expectations of rising bond yields, and a cool-off on the green trade.”
8. Clearway Energy, Inc. (NYSE:CWEN)
Number of Hedge Fund Holders: 21
Clearway Energy, Inc. (NYSE:CWEN) is a New Jersey-based renewable energy firm. Hedge funds have been piling into the stock in recent months. At the end of the fourth quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $182 million in Clearway Energy, Inc. (NYSE:CWEN), up from 17 in the previous quarter worth $151 million.
In November, Oppenheimer analyst Noah Kaye had upgraded Clearway Energy, Inc. (NYSE:CWEN) stock to Outperform from Perform with a price target of $44, noting the progress the firm was making on strategic initiatives supported the long-term growth and dividend prospects.
7. TPI Composites, Inc. (NASDAQ:TPIC)
Number of Hedge Fund Holders: 21
TPI Composites, Inc. (NASDAQ:TPIC) makes and sells wind blades. On January 13, investment advisory Morgan Stanley maintained an Overweight rating on the stock, upgrading the overall view on the clean tech industry to Attractive from In Line. Analyst Stephen Byrd issued the ratings update.
TPI Composites, Inc. (NASDAQ:TPIC) is one of the top clean energy stocks on Wall Street. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in TPI Composites, Inc. (NASDAQ:TPIC) with 753,600 shares worth more than $11 million.
In its Q4 2021 investor letter, Baron Funds highlighted a few stocks and TPI Composites, Inc. (NASDAQ:TPIC) was one of them. Here is what the fund said:
“TPI Composites, Inc. (NASDAQ:TPIC) is a manufacturer of composite blades for electricity generating wind turbines, and composite bodies for electric buses. While we admire the management team, the thesis underpinning the investment has just gotten too difficult given dramatic uncertainty in numerous areas. These include government subsidy status in the U.S., global logistics issues related to the pandemic, massive inflation in raw materials costs including steel and resin, and pandemic-related project halts that have hindered the ability for the company to optimize plant utilization. Given the meaningful increase in risk during the quarter, we exited the position.”
6. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders: 23
Plug Power Inc. (NASDAQ:PLUG) provides hydrogen fuel cell solutions. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in Plug Power Inc. (NASDAQ:PLUG) with 5.8 million shares worth more than $166 million.
On January 26, Susquehanna analyst Biju Perincheril initiated coverage of Plug Power Inc. (NASDAQ:PLUG) stock with a Positive rating and a price target of $26, noting the bullish outlook represented the top line growth potential of the company.
Along with Tesla, Inc. (NASDAQ:TSLA), General Electric Company (NYSE:GE), and First Solar, Inc. (NASDAQ:FSLR), Plug Power Inc. (NASDAQ:PLUG) is one of the stocks that institutional investors have on their radar.
In its Q2 2020 investor letter, Massif Capital, an asset management firm, highlighted a few stocks and Plug Power Inc. (NASDAQ:PLUG) was one of them. Here is what the fund said:
“We also closed our short position in Plug Power Inc. (NASDAQ:PLUG) this quarter as the market was subsumed with enthusiasm over their recent acquisitions, resulting in an almost 80% rally in the stock over ten trading days. Our decision to exit was painful at the time as we were forced to reconcile with a collective exuberance that was (and is, in our opinion) not grounded reality. In hindsight, it was the correct decision as we avoided most of its recent vertical trajectory.”
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Disclosure. None. Analysts Are Recommending These 10 Green Energy Stocks for the Future is originally published on Insider Monkey.
