As the world moves toward a greener future, renewable energy stocks are gaining momentum and attracting investor attention. Driven by government initiatives, rising consumer demand and global efforts to combat climate change, many clean energy companies are expected to thrive in this new green era. Here are seven energy stocks that show promise for potential growth:
1. SolarEdge (SEDG)
SolarEdge, an Israel-based company specializing in solar inverters, is well positioned to benefit from the Biden administration’s clean energy initiative. With a significant market share in the US microinverter market, SolarEdge is expected to beat earnings estimates. Additionally, contrary to some concerns, the company’s performance in the European Union is strong. Analysts forecast strong earnings growth for SolarEdge, making it an attractive investment opportunity.
2. First Solar (FSLR)
First Solar, an American maker of solar panels, has attracted investor attention because of several potential catalysts in the near future. Goldman Sachs remains bullish on the company in anticipation of a possible announcement of capacity expansion through new factories. In addition, rising demand for solar panels by US utilities, coupled with new tax rebates, is likely to push the consensus estimate higher. First Solar recently secured a significant order for its modules, indicating strong sales prospects in the coming years.
3. American Superconductor (AMSC)
With a focus on new energy power systems and wind turbine electronic controls, American Superconductor is poised for rapid expansion. Its products are especially in high demand in the renewable energy and semiconductor sectors. Given the Navy’s substantial budget, the company’s association with the US Navy offers opportunities for potential growth. Additionally, AMSC is in discussions with several utilities about providing its flexible electric grid system, indicating potential growth in the utility sector.
4. Maxion Solar (MAXN)
Maxion Solar, which is partly owned by French oil giant Total, is well positioned to supply solar panels to the rapidly growing solar power market in the European Union. Analysts expect the company’s margins to expand in 2023 and expect it to turn profitable in 2024. Maxion’s panels offer competitive advantages that attract installers and customers alike, creating potential growth for the company.
5. Darling Material (DAR)
Darling Ingredients’ joint venture with Valero, known as Diamond Green Diesel, is a leading supplier of renewable diesel, which is experiencing high demand amid pressure to reduce carbon emissions. The venture plans to produce sustainable aviation fuel, which has strong demand from airlines looking to cut their carbon footprint. Chevron and Bunge’s recent interest in renewable diesel companies indicates the potential for DAR to become an acquisition target in the future.
6. Plug Power (Plug)
Plug Power‘s electrolyzer business is gaining momentum, with a recent order for a 100 MW electrolyzer from a European oil and gas company indicating growing demand for green hydrogen. As the largest fossil fuel companies seek green hydrogen opportunities, Plug Power is well positioned to benefit from increased sales of its electrolyzers. Investment bank Northland Capital’s recent upgrade to “outperform” bodes well for the company’s long-term cash flow prospects.
7. Oersted (DNNGY)
Denmark-based Ørsted, a developer of wind power projects, has raised its growth target and dividend outlook, indicating confidence in its future prospects. Approval to install wind turbines off the coast of New Jersey and growing interest in wind power in the EU, US and China suggest potential growth opportunities for Ørsted.
Although these energy stocks have promising growth prospects, investing in the stock market carries inherent risks. It is important for investors to do thorough research and consider their risk tolerance before making an investment decision.
Disclaimer: The information provided about Seven Energy Shares is for informational purposes only and should not be construed as financial advice or investment recommendation. Investing in the stock market involves risk, and it is essential to conduct thorough research and seek advice from a qualified financial professional before making any investment decision. Actual performance of the stock may differ, and past performance is not indicative of future results. Always consider your risk tolerance and financial goals before investing.