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The energy industry is in a weird place right now. Fossil fuel usage across the world is declining but prices for coal are at a high and oil prices are moving up too, thanks to the energy crisis caused by the pandemic. This gives a solid buying opportunity in green stocks which have been plugging away and look good for a breakout. The list below highlights 6 Green Energy Stocks that could be excellent buys right now:
Top 6 Green Energy Stocks To Keep An Eye On Right Now
This company is one of the largest renewable energy players globally. Around 62% of its portfolio is hydroelectric. Another key point in the company’s favor is its long-term contracts. Right now, its power contracts have an average life of 14 years. This ensures predictable and regular cash flow which powers its growth story.
The stock is trading at $39.3 and the average target price on it is $50.33, a potential upside of over 28%. Brookfield is also a solid dividend payer and has grown its dividend at a CAGR (compounded annual growth rate) of 6% since 2021. It pays out a dividend yield of 3% currently. So, you can see your potential investment go up by a third.
Sometimes, a stock offers a buying opportunity after an impressive run-up. Atlantica Sustainable is down over 20% this year. But what you have to keep in mind is that this stock has delivered over 100% returns in the last five years. It owns renewable assets in the United States, Canada, Mexico, Peru, Chile, Uruguay, Spain, Algeria, and South Africa. Around 72% of its portfolio is in the renewable energy sector.
Analysts are positive on this stock with a target price of $42.63, a potential upside of over 16%. The stock has a dividend yield of almost 4.75% right now making it a sweet option to add to your investment portfolio.
This is the only electric vehicle stock on this list. It is one of the fastest-growing companies in the world and is also called China’s Tesla. Nio’s luxury electric SUVs continue to sell like hotcakes in its home country. Nio Founder and CEO William Li have predicted that so-called smart electric cars would account for 90% of new car sales in 2030. TO give context, the number was 10% as of March this year.
The company is launching its first electric sedan, the ET7 in 2022 along with two more SUVs. The stock is trading at $38.88 and analysts have an average target price of $57.75 on it, with a very attractive potential upside of over 48%.
This stock beat analyst estimates handsomely when it declared its numbers for the second quarter of 2021. EPS (earnings per share) came in at $0.18 compared to an estimate of ($0.3). Canadian Solar is one of the world’s largest producers of solar panels, inverters, and other solar products. In the company’s second-quarter earnings announcement, it said, “The Company reiterates its expectation that full-year 2021 revenue will be in the range of $5.6 billion to $6.0 billion, while slightly reducing its full-year 2021 total module shipment guidance to 16 GW to 17 GW from 18 GW to 20 GW previously.”
However, this is one of the more volatile stocks on this list. It has fallen over 33% in 2021 and is trading at $37.52. That said, analysts believe its third-quarter results will be good and have given an average price target of $45.25 on the stock, a potential upside of over 21%.
This stock has been flat in 2021. However, the timing might be ripe for a breakout. First Solar has been selling off its non-core businesses in the last three years and has now returned to what it does best: Produce and sell solar panels. The stock has risen continuously in the last 36 months creating a lot of wealth for shareholders who have stuck with it.
The company has $2.1 billion in cash on its balance sheets and earlier this year announced plans to increase electricity production by 3.3 GW each in the US and India. First Solar has said after accounting for increased production capacity, it will likely end 2021 with $1.35 billion in cash. Not a bad number by any means.
This is one of the best wealth creators in the green energy space. It has grown its EPS at a CAGR of 8.7% since 2005 and has increased its dividend by 9.6% CAGR in the same time period. It is also a Dividend Aristocrat.
NextEra is also the world’s largest wind and solar energy producer. The company released its third-quarter earnings recently. “NextEra Energy’s 2021 third-quarter earnings were $1,483 million, or $0.75 per share, compared to $1,311 million, or $0.67 per share, in the third quarter of 2020.” It added that its outlook for the future is unchanged. It said, “For 2021, NextEra Energy expects adjusted earnings per share to be in the range of $2.40 to $2.54. For 2022 and 2023, NextEra Energy expects to grow 6% to 8% off the expected 2021 adjusted earnings per share. For 2022 and 2023, this translates to an expected adjusted earnings per share range of $2.55 to $2.75 and $2.77 to $2.97, respectively.”
While green stocks have been around for quite a while, the sector is prone to bouts of volatility. It makes sense to look at companies that have solid plans for the future, and are capable of harnessing the excitement surrounding green energy to the fullest.
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