We recently published a list of 10 Most Profitable Renewable Energy Stocks Now. In this article, we are going to take a look at where Duke Energy Corporation (NYSE:DUK) stands against other most profitable renewable energy stocks.
In an interview with CNBC on November 9, John Berger, CEO of Sunnova stated that the market is misunderstanding the effects of a Trump administration on solar. Berger addressed speculation about the potential scaling back of the IRA policies under the Trump administration noting that the IRA will not change much, as it has been successful in promoting domestic manufacturing of solar panels, batteries, and electric vehicles. In fact, 85% of the capital investments in these areas are in Republican districts.
Berger also highlighted the success of the IRA in incentivizing domestic manufacturing, citing the tax credit for manufacturing and the domestic content requirement in the investment tax credit. He emphasized that both parties agree on the importance of domestic manufacturing.
Renewable Energy Under Trump’s Agenda
In another interview with CNBC on November 14, Bill Perkins, President and CEO at Skylar Capital Management, shared his insights on the energy agenda under President Trump’s new administration. Perkins emphasized that the incoming administration is “pro-energy of all kinds,” whether it’s nuclear, renewable, natural gas, or any other type of energy. He believes that the administration will aim to remove delays, bottlenecks, and frustration points that hinder energy production in the United States.
Perkins noted that the markets have already reacted to the change in administration, with renewable energy companies seeing their stocks relatively lower compared to oil and gas stocks. Perkins suggested that people are worried about the incentives, such as the Inflation Reduction Act, going away. However, he believes that the first thing the administration will focus on is addressing the permitting times, which are currently too long. He pointed out that there is a wing within the United States Environmental Protection Agency (EPA) and the government that is anti-development and is hurting renewable energy production.
We also discussed the US government’s incentives for the nuclear energy sector in our article about the 10 Best Nuclear Energy Stocks To Invest In Now, here’s an excerpt from it:
“To support nuclear expansion, the U.S. government has bolstered the sector with tax credits, loans, and research funding. The Inflation Reduction Act’s (IRA) production and investment tax credits for new reactors and existing plants are expected to play a pivotal role.
In 2024, Congress provided a $2.72 billion allocation for developing a domestic nuclear fuel supply chain and passed the ADVANCE Act to improve licensing process efficiency. Congress also allocated $900 million specifically for Gen III+ Small modular reactors (SMRs).
Small modular reactors (SMRs) are an alternative to traditional nuclear plants and offer a promising new opportunity for nuclear energy. SMRs are a type of nuclear reactor with a power capacity of up to 300 MW(e) per unit. They are manufactured off-site and shipped to the location for installation, making them more cost-effective and suitable for a wider range of areas.”
READ ALSO: 10 Best Nuclear Energy Stocks To Invest In Now and 10 Oversold Energy Stocks To Buy Now.
As the energy landscape continues to evolve, investors are closely watching the impact of the new administration on the renewable energy sector. With the global demand for clean energy on the rise and innovation in renewable technologies driving growth, the sector’s long-term outlook remains compelling.
Aerial view of a power plant near a lake lit up at night, showing off the company’s expansive electricity generation capabilities.
Our Methodology
To compile our list of the 10 most profitable renewable energy stocks now, we scanned clean energy ETFs plus online rankings to compile an initial list of 20 renewable energy stocks. From that list, we narrowed our choices to the 10 stocks that analysts see the most upside to. The list is sorted in ascending order of analysts’ average upside potential, as of November 16. The list is sorted in ascending order of their average upside potential as of November 16.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Duke Energy Corporation (NYSE:DUK)
Upside Potential: 10.62%
5-Year Net Income CAGR: 4.09%
TTM Net Income: $4.32 Billion
Duke Energy Corporation (NYSE:DUK) based in North Carolina, is one of the largest utilities in the US. The company provides electricity to approximately 8.4 million customers and manages around 54,800 megawatts of energy capacity. Duke Energy Corporation (NYSE:DUK) is heavily investing in wind, solar, and battery storage to transition to renewable energy.
On October 22, Duke Energy Corporation (NYSE:DUK) announced the expansion of its Green Source Advantage Choice (GSA-C) program in North Carolina, which allows large business customers to support renewable energy development by supplementing their power usage with 100% renewable, carbon-free generation. This program builds upon the success of the company’s legacy Green Source Advantage program, which has helped large businesses make decarbonization a long-term part of their business plans.
The GSA-C program provides large business customers with a path towards having 24/7 clean energy and enables them to count the renewable energy generated to satisfy their sustainability goals. The program has been expanded to offer up to 5,000 megawatts (MW) of capacity, which is more than five times the capacity available under the original program. This expanded capacity will allow more businesses to participate and support renewable energy development.
Duke Energy Corporation (NYSE:DUK) is offering several options for customers to participate in the GSA-C program. The “Bring Your Own Purchased Power Agreement” (PPA) option allows customers to bring their own renewable energy supplier, while the “Resource Acceleration Option” (RAO) offers an additional 300 MW of capacity every two years. A new “easy option” also allows customers to collaborate directly with Duke Energy Corporation (NYSE:DUK) on new facilities that will be coming online in the future.
Later this year, Duke Energy Corporation (NYSE:DUK) plans to file the Clean Energy Connection program with the North Carolina Utilities Commission, which will offer a subscription-based community solar program for customers to meet their sustainability goals. Similar programs have also been approved and are underway in South Carolina.
Overall, DUK ranks 6th on our list of most profitable renewable energy stocks now. While we acknowledge the potential of DUK to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DUK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
