We recently published a list of 10 Best Wind Power and Solar Stocks To Invest In Now. In this article, we are going to take a look at where Nextracker Inc. (NASDAQ:NXT) stands against other best wind power and stocks to invest in now.
According to a report by the World Economic Forum published on November 8, the US election result is expected to have a significant impact on the transition to renewable energy sources. Solar and wind energy stocks fell sharply following the election, as Donald Trump’s victory is anticipated to have a negative short-term impact on current climate policies. The president-elect has proposed policies that include increasing natural gas pipelines, ending offshore wind energy projects, and boosting fossil fuel production by easing restrictions on drilling on federal lands. He has also expressed intentions to withdraw the US from the Paris climate agreement and to support nuclear energy production.
Despite these challenges, analysts predict that the boom in renewable energy in the US is unlikely to be dramatically slowed. The Inflation Reduction Act passed during the outgoing administration, is expected to inject $1 trillion of spending into green energy, with estimates that 85% of the money has gone to districts that elected Republicans. This financial support, along with existing opposition to the curtailment of renewable energy, suggests that the long-term trajectory of the energy transition remains uncertain but potentially resilient.
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Trump’s Energy Policy and the Role of Elon Musk
In an interview with CNBC on November 13, Will Rhind, CEO of GraniteShares, discussed the potential implications of a Trump presidency on renewable energy such as wind and solar. Rhind noted that the playbook on energy policy was already seen in the previous Trump administration. The Trump administration has historically been more supportive of fossil fuels and less focused on renewable energy. Therefore, stocks and sectors favored by the Biden administration, such as solar and wind, might see a downturn.
Rhind suggested that the overall narrative may seem like it’s shifting back toward traditional energy sources. However, Elon Musk seems to be playing an integral role in the Trump administration, and he has been a proponent of climate policies, with his electric vehicle (EV) industry and other businesses, which suggests that energy transition policies may not be as impactful as some might expect today.
While the outcome of the US election and the anticipated policies of the new administration pose short-term challenges to renewable energy, the long-term outlook remains cautiously optimistic.
An empty shelf of bifacial PV modules ready to be installed in a large-scale solar project.
Our Methodology
To compile our list of the 10 best wind power and solar stocks to invest in now, we used clean energy ETFs plus online rankings to compile an initial list of 20 wind and solar energy stocks. We then used Insider Monkey’s Hedge Fund database to rank 10 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
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).
Nextracker Inc. (NASDAQ:NXT)
Number of Hedge Fund Holders: 32
Nextracker Inc. (NASDAQ:NXT) is a leading provider of solar tracking systems that track the movement of the sun and optimize the alignment of solar panels accordingly to enhance energy output. These trackers enable higher efficiency for large-scale solar farms. The company’s clients include utility-scale solar developers and project owners globally.
Nextracker Inc. (NASDAQ:NXT) is focusing on expanding its product offerings and improving its manufacturing capabilities. The company has recently introduced new products, such as the NX Horizon, NXTR 1.5, and NX Horizon Low Carbon Tracker, which have been successfully deployed in the field. Additionally, Nextracker Inc. (NASDAQ:NXT) has accelerated the availability of its 100% domestically manufactured trackers. This capability is expected to provide significant benefits to US customers by enabling them to capture a 10% bonus investment tax credit.
Moreover, Nextracker Inc. (NASDAQ:NXT) is investing in research and development to improve the efficiency and reliability of its products and expanding its business through strategic acquisitions and partnerships. The company has also established three global design facilities, including a new center in Hyderabad, India, which will enable the development of localized products for regional needs. Furthermore, Nextracker Inc. (NASDAQ:NXT) has closed two Foundation business acquisitions, which are expected to be successfully integrated by the end of the fiscal year. The company has also debuted its NX Foundation Solutions business, which will enable quicker, safer, and more efficient solar project development.
Overall, NXT ranks 8th on our list of best wind power and stocks to invest in now. While we acknowledge the potential of NXT 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 NXT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
