S&P 500   4,455.48
DOW   34,798.00
QQQ   373.33
S&P 500   4,455.48
DOW   34,798.00
QQQ   373.33
S&P 500   4,455.48
DOW   34,798.00
QQQ   373.33
S&P 500   4,455.48
DOW   34,798.00
QQQ   373.33

7 Clean Energy Stocks to Buy As Climate Change Initiatives Heat Up

Posted on Tuesday, August 17th, 2021 by MarketBeat Staff
7 Clean Energy Stocks to Buy As Climate Change Initiatives Heat UpClimate change remains a polarizing political issue. However, as an investor, it’s a debate that bears watching. And that’s not just the case for environmental, social, and governance (ESG) investors. Every investor that’s looking to profit from the current $3.5 trillion infrastructure bill needs to pay attention to the current debate about climate change.

That’s because right now the business of climate change is beginning to catch up to the emotion. And that makes it a good time to invest in the clean energy sector. This includes solar and wind stocks. But it also includes other related sectors such as electric vehicle charging and other renewable energy sources such as renewable natural gas (RNG).

That’s the topic of this special presentation which looks at 7 clean energy stocks that look like strong buys as the Biden administration looks to pass its sweeping infrastructure bill.

Investors need to be able to skate to where the puck is moving. For years, climate change initiatives have been bogged down by the reality that the technology was not ready to meet the moment. That is rapidly becoming a non-issue. And that makes this sector one that investors can’t afford to ignore.

#1 - Clean Energy Fuels Corporation (NASDAQ:CLNE)

Clean Energy Fuels logo

The first of the clean energy stocks on our list is the appropriately named Clean Energy Fuels Corporation (NASDAQ: CLNE). Many investors may have noticed that many of the electric vehicle (EV) companies that went public in 2020 are focusing on the commercial transportation sector. That’s because many companies have made pledges to power their fleets with a clean, low-carbon fuel.

Clean Energy Fuels is one of the largest providers of clean fuel for this growing market. Specifically, the company is engaged in the development and delivery of renewable natural gas (RNG). One benefit that is becoming apparent to fleet operators is that RNG can be used in combination with natural gas to create a clean, cost-effective alternative to diesel fuel.

And one of the more intriguing reasons to invest in CLNE stock is that in addition to delivering the fuel, they operate a growing network of fueling stations across the United States and Canada. 

CLNE stock first caught the attention of retail investors after the 2020 election. It got caught up in the meme stock movement and soared 614% to a closing price of $17.29 on February 12, 2021. The stock has since dropped over 50% but analysts still suggest the stock has a 12-month upside of over 80%.  

About Clean Energy Fuels
Clean Energy Fuels Corp. engages in the provision of natural gas as an alternative fuel for vehicle fleets in the United States and Canada. It also builds and operates compressed natural gas (CNG) and liquefied natural gas (LNG) vehicle fueling stations; manufacture CNG and LNG equipment and technologies; and deliver more CNG and LNG vehicle fuel.Read More 

Current Price: $8.16
Consensus Rating: Hold
Ratings Breakdown: 4 Buy Ratings, 1 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $14.83 (81.8% Upside)


#2 - NextEra Energy (NYSE:NEE)

NextEra Energy logo

As the economy begins to reopen, it’s becoming clear that traditional fossil fuels aren’t going extinct anytime soon. In fact, the growth in oil stocks is proof that a “both/and” approach will be necessary. That’s the kind of optionality you’re investing in with NextEra Energy (NYSE: NEE).

NextEra is first and foremost a traditional utility company. It owns power plants fueled by natural gas, nuclear energy, and oil. And when it comes to utility companies, location matters. In the case of NextEra, it supplies power to 50% of the homes in Florida. That’s one reason it’s the largest electric utility in the United States.

However, NextEra has a portfolio of wind turbines and solar panels that make it the world’s largest generator of renewable energy.

Over the last five years, NEE stock has generated an impressive 161% gain. The stock stumbled a bit after a four-for-one stock split in October 2020. In fact, as late as June, the stock was negative for the year, but it is surging in the past 60 days and is now up 16% for the year.

About NextEra Energy
NextEra Energy, Inc is an electric power and energy infrastructure company. It operates through the following segments: FPL & NEER. The FPL segment engages primarily in the generation, transmission, distribution and sale of electric energy in Florida. The NEER segment produces electricity from clean and renewable sources, including wind and solar.Read More 

Current Price: $80.70
Consensus Rating: Buy
Ratings Breakdown: 6 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $85.25 (5.6% Upside)


#3 - Sunrun (NASDAQ:RUN)

Sunrun logo

Solar energy has been one of the hottest subsectors in the renewable energy sector. And investors looking to invest in a best-in-class solar company need look no further than Sunrun (NASDAQ: RUN).

In June, Morgan Stanley (NYSE: MS) called Sunrun “the most compelling clean energy stock.” At the time, it raised its price target for RUN stock from $86 to $91. And although the company had a disappointing earnings report in August, only one analyst has issued a lower price target as of this writing.

That may be because analysts understood that Sunrun is caught in the middle of the infrastructure battle that now looks to have been resolved. With that in the rearview mirror, the company looks to benefit from government subsidies for solar panel installations.

Plus the company is active in the growing EV charging field. Sunrun is now the preferred installer for the Ford Motor Company’s (NYSE: F) F-150 EV pickup truck.

About Sunrun
SunRun, Inc engages in the design, development, installation, sale, ownership and maintenance of residential solar energy systems. It sells solar service offerings and install solar energy systems for homeowners through its direct-to-consumer channel. The firm also offers plans such as monthly lease, full amount lease, purchase system, and monthly loan.Read More 

Current Price: $43.02
Consensus Rating: Buy
Ratings Breakdown: 22 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $80.13 (86.3% Upside)


#4 - Canadian Solar (NASDAQ:CSIQ)

Canadian Solar logo

Sticking with solar stocks, investors can turn their attention north of the U.S. border and consider an investment in Canadian Solar (NASDAQ: CSIQ). Like Sunrun, Canadian Solar is a pure-play on the solar sector. And like Sunrun, the stock has been beset by the hot and cold attention paid to renewable energy stocks.

The company is one of the world’s largest manufacturers of all things solar. But it also provides advanced energy storage solutions. For example, the company has partnered with Habitat Energy to utilized Habitat’s AI-enabled battery optimization and dispatch services.

Canadian Solar released its second-quarter earnings on August 12, 2021, and it pleased investors. Not only did revenue increase to 1.43 billion. The 105% year-over-year increase fell comfortably in the range of $1.4 billion to $1.5 billion forecast by analysts.

And in terms of gross margin and net income, the story was even better. After an initial dip in after-hours trading, the stock turned positive. That is in line with the opinion of analysts who are forecasting CSIQ stock to have a 12-month price target of $54 which would be a gain of nearly 30% (29.81%) from the stock’s current level.

About Canadian Solar
Canadian Solar, Inc engages in the manufacture of solar photovoltaic modules and provides solar energy solutions. It operates through the Module and System Solutions (MSS) and Energy segments. The MSS segment involves in the design, development, manufacture, and sales of solar power products and solar system kits, and operation and maintenance services.Read More 

Current Price: $33.72
Consensus Rating: Buy
Ratings Breakdown: 5 Buy Ratings, 2 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $49.50 (46.8% Upside)


#5 - Daqo New Energy (NYSE:DQ)

Daqo New Energy logo

Another international company to make the list is Daqo New Energy (NYSE: DQ). The Chinese company manufactures the monocrystalline silicon and polysilicon that is used in solar panel production. Like several of the stocks on this list, Daqo stock is down on the year. Being a Chinese company there may be many reasons for that dip. But certainly, the delay of the infrastructure bill is weighing on all solar stocks.

However, one of the best ways to assess a company’s short-term fortunes is to look at what the analysts have to say. And analysts are bullish on DQ stock. The consensus opinion of analysts is for the stock to climb to $88.92; that’s a gain of over 50% from its current price.

 And with the company due to report earnings in mid-August, that could be revised upwards. At that time, the company is expected to post earnings of $3.29 on revenue of $389.15 million. That would be a revenue increase of over 100% from the prior-year quarter.

About Daqo New Energy
Daqo New Energy Corp. is a holding company, which engages in the provision of polysilicon products. It involves in the manufacture and sale of polysilicon to photovoltaic product manufactures, who further process the polysilicon into ingots, wafers, cells, and modules for solar power solutions. The company was founded by Guang Fu Xu on November 22, 2007 and is headquartered in Shanghai, China.

Current Price: $53.82
Consensus Rating: Hold
Ratings Breakdown: 3 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $76.94 (43.0% Upside)


#6 - Enphase Energy (NASDAQ:ENPH)

Enphase Energy logo

Enphase Energy (NASDAQ: ENPH) offers a different way to play the solar sector. The company is the world’s leading supplier of photovoltaic solar home energy solutions. As part of the renewable energy bubble of late 2020, ENPH stock soared over 100% between Election Day and the middle of January.

The stock is down about 10% since then but has rallied 4% since delivering strong quarterly earnings in July. For the quarter the company beat on both the top and bottom lines. Enphase’s quarterly revenue of $311.23 million was 5% higher than the prior quarter and approximately 150% higher than the same quarter in 2020. And the company told analysts that it was forecasting a 9% sequential increase in revenue for the next quarter.

In addition to the opportunity that exists within the United States, investors can be excited about the company’s first expansion into an international market. Enphase launched its Encharge battery storage system in June which is serving as an additional catalyst for the stock.

About Enphase Energy
Enphase Energy, Inc engages in the design, development, manufacture and sale of micro inverter systems for the solar photovoltaic industry. Its products include IQ 7 Microinverter Series, IQ Battery, IQ Envoy, IQ Microinverter Accessories, IQ Envoy Accessories and Enlighten & Apps. The company was founded by Raghuveer R.Read More 

Current Price: $153.66
Consensus Rating: Buy
Ratings Breakdown: 19 Buy Ratings, 10 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $183.82 (19.6% Upside)


#7 - Brookfield Renewable Partners (NYSE:BEP)

Brookfield Renewable Partners logo

The last, but certainly not the least of the clean energy stocks to consider is that of Brookfield Renewable Partners (NYSE: BEP). Brookfield is one of the largest clean energy companies in the world, having a hand in every major renewable energy sector. At this time, approximately 62% of the company’s portfolio is in the area of hydroelectric power (they have over 200 power plants). However, the company also operates wind farms (approximately 100) and solar facilities (over 550). This combination allows Brookfield to generate 21 gigawatts of power with an additional 27 gigawatts as part of its development pipeline.

BEP stock is up 29% in the last 12 months, but it has underperformed the market in 2021. As of this writing, the stock is down 12%. However, since the company’s debut in December 2017, the stock is up 122%.

And Brookfield is a favorite of income investors because the company pays out approximately 95% of its earnings as a dividend. The company has grown the dividend 16% in the last three years.

About Brookfield Renewable Partners
Brookfield Renewable Partners LP engages in owning a portfolio of renewable power generating facilities primarily in North America, Colombia, Brazil, Europe, India, and China.. It operates through following segments: Hydroelectric, Wind, Solar, Energy Transition, and Corporate. The Energy Transition segment distributes generation, pumped storage, cogeneration, and biomass.Read More 

Current Price: $38.21
Consensus Rating: Hold
Ratings Breakdown: 7 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $43.04 (12.7% Upside)

 

There is a saying that change happens slowly, then all at once. That is an apt analogy to what is going on in the clean energy sector. For years, many companies have been diligently working to create technologies that can make clean energy solutions a viable alternative to traditional fossil fuels.

The industry may not be there quite yet, but it’s much closer than it has ever been. And the sector has strong support from the majority party in the United States. This means that it’s time for investors to look closely at the role that clean energy stocks can play in your portfolio.

Investors who may be concerned about putting all their eggs in one or two baskets may consider investing in one of the many clean energy exchange-traded funds (ETFs) that are available. Many of these ETFs are tailored to specific niches within the sector giving you different ways to invest based on the areas you may believe or most profitable, or those that you feel most passionately about.

7 Fintech Stocks That Will Continue To Disrupt Traditional Banking

In April 2021, JPMorgan Chase CEO Jamie Dimon described fintech companies as one of the “enormous competitive threats” to traditional banking. And with good reason. Fintech (short for financial technology) is not just “digital banking.” It’s a different approach to banking that traditional banks will not be able to replicate by outspending their competitors.

You see, cryptocurrency is getting a lot of attention for the way it’s disrupting the monetary system. But before there was bitcoin (CCC: BTC-USD), there was fintech.

What started out as a way to send money from one person to another without the need for a bank (i.e. peer-to-peer lending) has morphed into much more. Today, individuals and businesses can get loans, invest, and pay bills conveniently and securely. And they can do so without ever having to set foot into a bank.

Financial technology is democratizing finance for many individuals who have been left behind by the traditional banking system. The “unbanked” is a huge target audience. But whereas fintech started as reaching those that were unbanked out of necessity; it is cultivating a new audience among those who are going unbanked by choice.

In this special presentation, we’ll look at seven fintech companies that are leading in this space today and will do so well into the future.

View the "7 Fintech Stocks That Will Continue To Disrupt Traditional Banking" Here.





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