Renewable Energy Stock Picks podcast includes some great renewable energy stock analyses from Zacks, The Motley Fool, InvestorPlace, and others.

 

By Ron Robins, MBA

Transcript & Links, Episode 130, May 17, 2024

Hello, Ron Robins here. So, welcome to this podcast episode 130 titled “Renewable Energy Stock Picks.” It’s presented by Investing for the Soul. Investingforthesoul.com is your site for vital global ethical and sustainable investing mentoring, news, commentary, information, and resources.

Now, remember that you can find a full transcript, and links to content – including stock symbols and bonus material – on this episode’s podcast page located at investingforthesoul.com/podcasts.

Also, a reminder. I do not evaluate any of the stocks or funds mentioned in these podcasts, nor do I receive any compensation from anyone covered in these podcasts. Furthermore, I will reveal to you any personal investments I have in the investments mentioned herein.

Additionally, quotes about individual companies are brief. Please go to this podcast's webpage for links to the actual articles for more company and stock information. Also, some companies might be covered more than once and there are also 2 article links below that time didn’t allow me to review them here.

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1) Renewable Energy Stock Picks

I’m beginning with this article which is from the famous Zacks research team. It’s titled 4 Stocks to Watch in the Path to Decarbonize the Future and is by Rimmi Singhi and found at sg.news.yahoo.com.

Here are brief quotes by the author on each stock.

“1. Clearway (CWEN)

along with its subsidiaries owns and operates a diverse portfolio of contracted renewable and conventional generation, along with thermal infrastructure assets in the United States. Furthermore, Clearway’s asset portfolio includes more than 9,000 megawatts (MW) of wind, solar, thermal, and natural-gas-fired power generation facilities as well as distract energy systems…

The Zacks Consensus Estimate for Clearway’s 2023 sales and earnings implies year-over-year growth of 15% and 149%, respectively… It boasts a long-term earnings growth rate of 10%. Clearway currently sports a Zacks Rank #1 (Strong Buy).

2. NextEra (NEE)

is a leading provider of wind and solar energy in the United States. The company also operates in Canada and has a growing presence in Latin America. NextEra has many renewable projects in its backlog and their completion will ensure reduced emissions. The company expects to be able to add 33-42 gigawatts (GW) of new renewables in the 2023-2026 time frame to the generation portfolio via clean energy investments…

The Zacks Consensus Estimate for NextEra’s 2023 and 2024 earnings implies year-over-year growth of 8% and 8.2%, respectively. The same for 2023 and 2024 revenues indicates a year-over-year uptick of 27% and 9%, respectively. The company surpassed earnings estimates in the last four quarters, the average surprise being 6.2%. It boasts a long-term earnings growth rate of 9%. NextEra currently carries a Zacks Rank #2 (Buy).

3. Brookfield (BEP)

is a renewable energy firm that operates hydro, wind, solar, and storage assets in North America, South America, Europe and Asia. Hydroelectric power comprised 50% of its portfolio in 2022. The firm remains focused on the expansion of its expertise in wind, solar, and energy storage capabilities through acquisitions and development projects. Over the past decade, Brookfield's earnings have witnessed a CAGR of around 10%. Brookfield is committed to maintaining a strong balance sheet to support further expansion.

The Zacks Consensus Estimate for Brookfield’s 2023 and 2024 earnings implies year-over-year growth of 120% and 275%, respectively… The firm boasts a dividend yield of more than 4% and has increased its payout five times in the last five years. Brookfield currently carries a Zacks Rank #3 (Hold).

4. Vestas (VWS.CO)

is a global leader in the wind energy sector. It has a wide range of expertise, including the design, manufacture, installation, development, and servicing of wind energy and hybrid projects worldwide. With over 157 GW of wind turbines installed in 88 countries, Vestas is a major player in the industry…

The Zacks Consensus Estimate for Vestas’ 2023 and 2024 earnings implies year-over-year growth of 126% and 189%, respectively. The same for 2023 and 2024 revenues indicates a year-over-year uptick of 7% and 25%, respectively. Vestas currently carries a Zacks Rank #3.”

End quotes.

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2) Renewable Energy Stock Picks

This second article is again by the prodigious research output group, InvestorPlace. It’s titled 3 Renewable Energy Stocks to Capitalize on the Sustainability Surge. It’s by Rick Orford and found on investorplace.com. Now some of what Mr. Orford says about his stock picks.

“1. First Solar (NASDAQ:FSLR)

The continued growth in solar power as an alternative energy source has made companies like First Solar an important part of the government’s plan to transition to a green economy. 

The company is one of the top producers of photovoltaic cells (PV) used in building CdTe solar modules that transform sunlight into electricity, making it an invaluable component of the solar power production chain. The growing demand for solar energy has led to First Solar’s acquisition of an Ohio facility that serves as its distribution center, enabling it to scale manufacturing…

Looking forward, First Solar expects net income per diluted share to end between $13.00 and $14.00 — almost doubling 2023 results — and net sales to be around $4.4 billion and $4.6 billion for 2024. With the government’s strong push to go green, First Solar has tremendous potential, making it one of the best choices for renewable energy stocks to buy.

2. Broadwind (NASDAQ:BWEN)

specializes in wind energy equipment, clean energy structures and clean technology used by different sectors. The company agreed with MarketAxess Holdings (NASDAQ:MKTX) to ‘sell earned Advanced Manufacturing Production Credits’ which will help significantly improve its liquidity profile.

Broadwind’s latest results showcased impressive growth in FY’23. Revenue reached $203.5 million, 15% higher than the previous year’s reported revenue of $176.7 million…

Despite a slight decrease in orders and backlog from last year, Broadwind is still optimistic about future prospects, especially with expectations of accelerating wind development in the latter half of 2024. 

3. Beam Global (NASDAQ:BEEM)

is a clean technology innovator that designs advanced solutions for energy storage, electric vehicle (EV) charging and energy infrastructures. 

Its patented infrastructure product EV ARC (Electric Vehicle Autonomous Renewable Charger) uses integrated battery storage and solar power that provides a power source for electric vehicle charging stations. The company also offers street furniture and street lighting products globally…

The company finished FY’23 with a record revenue of $67.4 million, a 206% growth compared to last year’s $23 million. Earnings for the year improved to a net loss of $1.30, an increase of 34.6% compared to the previous year’s loss of $1.99. In addition, the company reported positive full-year gross profit and remained debt-free with an unused $100 million line of credit.

Its significant backlog and contracts mean the company should have ample cash flow to fund its future operations.”

End quotes.

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3) Renewable Energy Stock Picks

This third article is titled SunPower Stock Has 87% Upside, According to 1 Wall Street Analyst. It’s by Rich Smith and found on fool.com.

Here are some of his comments.

“Is SunPower (SPWR) stock a buy in 2024?

Quoted on The Fly Monday, Richardson explained he cut SunPower's price target because green energy stocks have been underperforming this year and inventories are still bloated. But the analyst remains optimistic that ‘inventory channel clearings are nearly complete’ and so the bottom is not far off. Combined with rising electricity rates, that's going to create more demand for cheap solar power, and create the potential for SunPower's sales to turn around.

Is he right?

As the saying goes, it's hard to make predictions -- especially about the future. Still, if the ‘bottom’ has truly already arrived for solar power stocks, then it's arrived remarkably quickly. In related cyclical industries such as semiconductors for example, oversupply cycles ordinarily take six to 18 months to reverse. But SunPower's sales have only been falling for a couple of quarters. According to data from S&P Global Market Intelligence, sales were still on an upswing as recently as the second quarter of 2023!

While it's possible SunPower's going to get away with just a six-month downturn, therefore, I wouldn't bet on it. And I wouldn't bet on a company valued at $380 million, and burning more than half that amount ($201 million) in cash every year, doubling over the next 12 months either.

More than likely, SunPower stock still has at least a few more rough quarters ahead of it.”

End quotes.

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4) Renewable Energy Stock Picks

The last article is titled 3 Renewable Energy Stocks That Will Make Other Investors Green With Envy. It’s by Rick Orford, and found on investorplace.com.

Here are some comments by Mr. Orford.

“For this analysis, I’ve started with a screen of the top 30 Renewable Energy Companies based on the Market Cap. Then, I filtered the list for the following criteria:

• Year-on-year quarterly net income growth of over 30%,
• Analyst rating of 4 and above (moderate to strong buy) and
• An upside potential of over 50% based on high target prices.

This list of renewable energy stocks to buy is sorted in descending order based on upside potential.

1. First Solar (NASDAQ:FSLR)

drives the global transition to renewable energy by harnessing the sun’s power. The company manufactures thin-film PV solar modules, which offer a lower-carbon alternative to conventional crystalline silicon PV modules. 

First Solar’s business operations include manufacturing cadmium telluride solar modules, project development activities, operations and maintenance services. The company has a presence in France, Japan, Chile and, of course, the United States… 

First Solar’s Q4FY’23 financial report is a relief for many investors. Its revenue Increased to $1.16 billion from $1 billion YOY. EPS also recovered considerably from a 7-cent loss to a $3.27 profit per share. 

Its metrics, including its YOY net income growth of 84.65%, make it easy to understand why analysts rate the stock a strong buy, with a high target of $269 — over 52.6% upside potential from its current levels. 

2. Fluence Energy (NASDAQ:FLNC)

is a driving force in integrating renewable energy into power grids. It delivers highly modernized energy storage solutions worldwide.

The company offers various energy storage products like Gridstack Pro, Gridstack, Sunstack, Edgestack and Ultrastack. It caters to applications such as large-scale front-of-the-meter, DC-coupled solar + storage, commercial and industrial use cases, and more…

Fluence Energy’s Q1’24 financials are pretty decent despite minor setbacks in metrics. Its revenues increased from $363.95 million to $310.46 million YOY. Its gross profit increased from $12 million to $36.39 million.

However, Fluence Energy’s net quarterly income loss was $25.55 million, an improvement from $37.19 million last year. 

Analysts rate FLNC stock a strong buy, targeting a high price of $37, which translates to 107% upside potential from its current levels. 

3. Brookfield Renewable Partners (NYSE:BEP)

is a prominent player in the renewable energy sector and owns various assets worldwide. The company’s portfolio includes hydroelectric, wind, solar and energy storage facilities, with an operating capacity of approximately 33,000 megawatts. 

Moreover, Brookfield Renewable Partners has a significant development pipeline and invests in sustainable solutions such as renewable natural gas, carbon capture and storage, recycling and nuclear services…

Brookfield Renewable Partners reported pretty decent Q4’23 financial results with its all-positive YOY performance. Its revenue slightly increased to $1.32 billion from $1.20 billion. On top of that, the company’s net income significantly increased to $264 million from $60 million, placing its EPS in a recovering trajectory of $0.01 from the -$0.16 loss reported in FY’22.

Analysts rate Brookfield Renewable Partners stock a strong buy with a high target of $52, reflecting over 152% upside potential.”

End quotes.

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One Honorable Mention

Title: 3 Renewable Energy Stocks to Sell in May Before They Crash & Burn on investorplace.com. By Achintya Pasricha.

One article from Australia

Title: Does Australian Ethical Investment (ASX:AEF) Deserve A Spot On Your Watchlist? On yahoo.com. By Simply Wall St.

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Ending Comment

Well, these are my top news stories with their stock and fund tips -- for this podcast titled: “Renewable Energy Stock Picks.”

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Thank you for listening.

I’ll talk to you next on May 31st.

Bye for now.

 

© 2024 Ron Robins, Investing for the Soul