In this article, we present our list of the 10 best solar energy stocks to buy now. Click to jump and jump to 5 best solar energy stocks to buy now.
Buying stocks of solar energy is not always as simple as it should be. With so many options, investors are really confused and want to keep up with growing investor interest and very high stock returns. Now, let’s take a closer look at the solar and equities sector.
Investing in renewable energy has never been more important. As society faces climate change and its consequences, companies have to work hard to meet compliance requirements. One way to do this is to increase the use of renewable resources to meet energy demand. In addition, governments support renewable energy generation to achieve their zero net emissions targets. As a result, companies are taking advantage of this interest and the number of renewable energy companies is skyrocketing. The sector focuses not only on photovoltaic systems, but also on applications of solar thermal energy, in addition to manufacturing components, installation and operational services.
There is no doubt that the Biden administration will support the renewable energy sector by announcing ‘9 key elements for a clean energy revolution’. At the heart of the plan and probably the most exciting part is to put the United States on a path to achieving zero net emissions by 2050. In addition, the United States is likely to spend $ 400 billion over ten years on clean energy and innovation, according to its declaration. Precisely, solar energy will be part of that policy.
According to the International Energy Agency (IEA), “the generation of solar photovoltaic energy is estimated to have increased by 22% in 2019, to 720 TWh. With this increase, the solar photovoltaic share in the global generation of electricity is now of almost 3% “. The IEA also expects solar photovoltaic electricity generation capacity to increase 19.2% in 2022. In addition, solar photovoltaic energy will account for 55% of total renewable electricity production in the same period. According to the IEA, ‘the average annual addition of solar photovoltaic capacity during 2023-25 is expected to vary from 130 GW in the main case to 165 GW in the accelerated case, representing almost 60% of the total expansion of renewable energy.’
With all the positive reviews and news, it seems like a good idea to invest in solar energy stocks that prioritize cash generation and have healthy balance sheets. The financial sector has already adapted to the new solar revolution through ETFs. Consequently, energy ETFs have caught the attention of investors. In order to reach the top 10 solar energy stocks to buy now, we identified the publicly traded solar energy stocks that are on the Invesco Solar ETF (TAN) and ranked them using sentiment data from Insider Monkey’s hedge fund.
Why do we believe that hedge fund sentiment data will help us identify the best solar stocks to buy now? Our internal analysis shows that we can use the sentiment information collected in the hedge fund files to classify a select group of stocks in advance that can surpass the S&P 500 index in double digits on average annually. For example, the stock options portfolio in our monthly newsletter has outperformed the market by more than 88 percentage points since March 2017 (see details here). Some of the portfolio holdings in our monthly newsletter have also been shared publicly. In October, we shared this real estate stock and since then it has increased by almost 50%.
Based on our hedge fund opinion data, here are the top 10 solar stocks to buy now:
10. Hannon Armstrong Sustainable Infrastructure (NYSE: HASI)
No. of HFs: 13
Total value of HF holdings: $ 75 million
Hannon Armstrong is a large-cap investment company based in the United States exclusively dedicated to investments in climate solutions, providing capital to companies in energy efficiency, renewable energy and other sustainable infrastructure markets. The company currently has more than $ 6 billion in managed assets, with a total of 208 investments. The company’s main markets are distributed solar systems, storage, onshore wind energy and terrestrial solar network connections, rainwater remediation and ecological restoration.
Currently, real estate and alternative energy funds hold shares in the company. The gain of shares this year is 116.9% and the compound rate of revenue growth in 3 years is 34.4%
9. Sunpower Corp (NASDAQ: SPWR)
No. of HFs: 14
Total value of HF holdings: $ 91 million
SPWR ranks 9th on our list of the best solar energy stocks to buy now. Sunpower is a large capitalization company based in the United States that designs complete solutions for residential and commercial solar systems, with personalized customer service support. The company has received more than 1000 patents for solar innovation. Sunpower is about to close its solar plant and plans to focus on sales and services of solar and battery storage systems in the US and Canada, as well as developing products for downstream energy services such as power management software .
The share gain this year is 290.7% and the compound rate of revenue growth over 3 years is -3.6%. Here’s what we wrote about SPWR last week:
“SPWR’s shares were traded almost stable during the first half of 2020, when its solar installation operations suffered a setback due to the pandemic. However, the launch of a successful vaccine against Covid-19 and the increase demand for renewable energy sources are expected to have a positive impact on SPWR stock in the coming quarters. new domestic market by 2025. So there is a huge opportunity for SunPower in the US market. The company is already working with most of the country’s leading builders to deploy solar panels.
SunPower shares have seen an upward trend in the past six months, rising almost 470% during the period. The stock rose more than 20 percent in Wednesday’s midday trading session in great volume. The surge came as Democrats approached taking over the government and the US Senate. Democrats have already outlined their plan to approve more green energy bills and pursue environmentally friendly policies.
In addition, Goldman Sachs recently raised its target price for SPWR shares from $ 23 to $ 33, another reason behind the latest stock rise. “
8. Daqo New Energy (NYSE: DQ)
No. of HFs: 18
Total value of HF holdings: $ 109 million
DQ ranks 8th on our list of the best solar energy stocks to buy now. Daqo New Energy is a large-cap company based in China, a leading manufacturer of high-purity polysilicon for the global photovoltaic solar energy industry. The company is known for producing high purity polysilicon with a capacity of 70,000 metric tons per year.
The share gain this year is 660.8% and the compound rate of revenue growth over 3 years is 29.7%.
7. Clearway Energy Inc (NYSE: CWEN)
No. of HFs: 19
Total value of HF holdings: $ 256 million
CWEN ranks 7th on our list of the best solar energy stocks to buy now. Clearway Energy Inc is a large-cap company headquartered in North America that trades investors in energy infrastructure with a focus on modern, sustainable and long-term assets contracted in North America. The company currently owns more than 7,000 megawatts of wind, solar and natural gas generation facilities, as well as district power systems. The business consists of 2,472 MW of natural gas plant, 1,157 MW of solar plant on a public scale, 159 MW of distributed solar plant, 2,413 MW of wind power plant and 39 MW of thermal generation plant. Total assets are worth 6,240 MW.
The company recently signed a 1.6 GW portfolio of renewable energy assets, including solar and wind projects, with its renewable development partner, Clearway Energy Group. The share gain this year is 72.7% and the compound rate of revenue growth over 3 years is 4.1%.
6. Sunnova Energy International Inc (NYSE: NEW)
No. of HFs: 23
Total value of participation in HF: $ 423 million
NOVA ranks 6th among the 10 best solar energy stocks to buy now. Sunnova Energy International Inc is a large-cap company based in the United States that provides residential energy and solar energy storage services to customers in the United States and its territories. With domestic solar systems, battery storage, roof replacement, monitoring, maintenance and financing options, the company has more than 100 thousand customers. The rise in residential electricity rates in the U.S. is leading to the growth of solar roof systems, from which the company benefits.
This year’s share gain is 349.5% and the compound annual growth rate is 27%.
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Disclosure: None. 10 best stocks of solar energy to buy now is originally published in Insider Monkey.