Morgan Stanley: Clean energy stock is top pick that can nearly double

“We produced another strong quarterly earnings in our global ingredients business, reporting adjusted EBITDA of approximately $230 million for the third quarter,” cited CEO Randall C. Stuewe. Irving, Texas-based Darling Ingredients provides sustainable ingredients for customers in numerous industries, including pharmaceutical, food, pet food, fuel, and fertilizer names. The company transforms various animal by-products into components and specialty products such as fats, proteins,  fertilizers, gelatin, and pet food ingredients. Net income came in at $21 million, or 18 cents per diluted share, down from $32 million, or 27 cents per diluted share, in the prior-year quarter. Management issued third-quarter fiscal 2022 results in early December.

Mining firms led the performance with Equinox Gold (EQX), Lucara Diamonds, Turquoise Hill (TRQ), Barrick Gold (GOLD), Lithium Americas (LAC), and Ivanhoe Mining, each contributing more than 2.5% to the portfolio’s return. ORA was mentioned in the 50 Best Utility Dividend Stocks to Invest In. The top hedge fund holder of this stock is Ian Simm’s Impax Asset Management which had $142 million invested in the stock at the end of September. Wind machines have the ability to power cities when installed in arrays, replacing the emission-spewing coal-fired or natural gas-fired plants that today form the backbone of many electrical systems. The New York Times recently wrote an article on General Electric (GE)’s test model for their plans of new series of giant offshore wind turbines.

Bolt sales rose 72% to 38,120 in 2022, still a pittance compared to Tesla’s 1.3 million. The company has said that it plans to invest $35 billion in electric vehicle (EV) and autonomous vehicle (AV) production through 2025. By mid-decade, GM plans to sell a million EVs a year in North America. SolarEdge reported 2022 revenue of $3.1 billion, up from $2.0 billion in the prior year.

First Trust Global Wind Energy ETF

The fund has a AA rating from MSCI, putting it in the 76th percentile of all ETFs. That makes it an excellent option for socially responsible investors seeking an ESG fund. How long the company has been in business, its annual revenue and its ESG score are all good things to consider before buying a stock. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research.

It complements its wind and solar energy portfolio with highly efficient facilities powered by natural gas. Clearway also sells its power via PPAs that generate a steady cash flow for the company. It’s one of the world’s largest producers of hydroelectric power, which will make up 50% of its portfolio in 2023. Brookfield also has been increasing its wind (onshore and offshore), solar (utility-scale and distributed generation, such as rooftop solar), and energy storage expertise. The company sells the bulk of its power under long-term PPAs that generate steady cash flow.

Dominion Energy Inc. (NYSE:D)

However, GAAP net loss widened to $69.4 million, or 21 cents per diluted share, up from $46.6 million, or $3.11 per diluted share, a year ago. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. As always, if you see any individual stocks of interest, your next step should be to do your own research to form your own opinion about a company’s ability to remain competitive over the next decade or longer. Clean-energy ETFs are an easy way to play a long-term trend that is being pushed by governments around the world, with diversified portfolios.

Alternative energy companies are playing a vital role in the energy transition away from fossil fuels and thus contributing to the fight against climate change. They comprise a growing list of companies, including solar, wind, hydrogen, tidal, geothermal, and biomass energy businesses. Today, I’ll introduce seven of the best clean energy stocks to buy before the year ends. This ETF’s focus on solar enables investors to invest in a basket of the top solar energy stocks. That means it’s an ideal ETF to make a directional bet on the upside of solar energy investment.

Revenue is expected to top $20 billion by 2030 with a gross margin of 35% and an operating income in excess of 20%. The International Energy Agency estimated the cost of “producing hydrogen from renewable electricity could fall 30% by 2030.” Declining cost is another catalyst for scaling up hydrogen production. The First Trust Nasdaq Clean Edge Smart Grid Infrastructure Index Fund has a AAA rating from MSCI. The First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund aims to track the performance of companies in the grid and electric energy infrastructure sector. The iShares Global Clean Energy ETF rates highly on environmental, social, and governance (ESG) factors.

Air Products and Chemicals (APD)

“Westinghouse is well positioned to capture the increasing global tailwinds for nuclear,” according to Brookfield.

• As a result, companies focused on green energy should prosper as more investment flows into the sector over the coming years.
• They must decide how to best position their portfolio to profit from the upside potential.
• The average analysts’ recommendation on the stock is Buy, according to Nasdaq.
• This form of socially responsible investing prioritizes good corporate behavior.
• This clean power demand by corporations is a “critical part” of America’s energy transition, the trade group says.

The Inflation Reduction Act is expected to give a lift to Vernova, as it should for other green energy stocks too. First Solar has the means to continue expanding because it boasts one of the best balance sheets in the sector. Even with its heavy investments in building new manufacturing capacity, the company expected to end 2023 with $1.2 billion to $1.5 billion in net cash. The cushion gives it tremendous financial flexibility to continue expanding to capitalize on the increasing demand for solar panels.

Clean Energy Stocks for 2021 and Beyond

Meanwhile, it has boosted its dividend at a 9.9% annual rate and increased its dividend for more than 25 consecutive years. NextEra Energy is one of the world’s largest producers of wind and solar energy. It generates power at its Florida utilities and its energy resources segment, which sells power under PPAs to other utilities and users. Although offshore turbines now account for just 5% of the overall wind industry’s generating capacity, the part of the market has taken its own identity and is expected to grow faster in the coming years. According to International Energy Agency, the GE turbine is selling better than its competitors may have expected. On Dec. 1, GE reached an agreement to provide turbines for Vineyard Wind and has deals to supply 276 turbines to what is likely to be the world’s largest wind farm at Dogger Bank off Britain.

NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. NerdWallet does not and https://1investing.in/ cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues.

The First Trust NASDAQ Clean Edge Green Energy ETF has an AA rating on ESG from MSCI. Overall, it ranks in the 55th percentile of global ETFs on ESG factors. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. We believe everyone should be able to make financial decisions with confidence. Adjusted net income increased 14% to $17.8 million, or 32 cents per diluted share, up from $15.7 million, or 31 cents per diluted share, in the prior-year quarter.

Brookfield Renewable Partners L.P. (NYSE:BEP)

GE’s machine has set the standards for the industry, one single machine will be able to light up a town of roughly 12,000 homes. The shares also sold off after the company announced that it had found accounting errors in its financial results for 2018, economics phd salary 2019 and the first three quarters of 2020. Per its website, Ørsted now has over 1,000 onshore wind turbines around the world, including a growing U.S. portfolio. The company offers 3,000 MWs of power just through its U.S. onshore wind farms.

• The First Trust NASDAQ Clean Edge Green Energy ETF has an AA rating on ESG from MSCI.
• This influences which products we write about and where and how the product appears on a page.
• For instance, if you bought a wind energy stock for $100 and the company went out of business, you would lose the $100, but you would not owe $100.
• It also features businesses that operate wind farms and solar energy facilities, such as electric utilities.
• This is a testament to the above claim that the clean energy sector is expected to continue to become larger and more profitable.

In Q2 2022, the company also posted revenue of $169.1 million, exceeding Wall Street estimates and representing a 15% YOY increase. “Corporate clean energy demand, low-cost energy profile, electrification, and energy independence continue to be key trends accelerating renewable deployment,” the company said in its 2022 earnings release. While GE Vernova is still incurring losses, Aguilar believes Strazik can drive the unit to profitability next year and break even in renewables in 2026. For Q2 2023, Plug Power reported revenue of $260.2 million, a 72% increase year-over-year (YoY).

It may make sense to look into wind energy companies for cheaper investment opportunities. NextEra Energy (NEE, $75.97) is typically found on lists of the best green energy stocks to buy. It owns Florida Power & Light, which is the biggest electric utility in the U.S., providing clean electricity to more than 12 million people. It also is a corporate leader in sustainability, having been awarded the S&P 500 Global Platts 2020 Energy Transition Award for ESG leadership. This ETF also concentrates its investments among its largest holdings. However, it still offers investors diversified exposure to the clean energy sector but with more of a focus on the electrification of transportation and the energy sector.

The list below includes utilities stocks involved in the production, storage or distribution of renewable energy. Keep in mind that performance is only one data point, and stocks that are currently performing well may not be the best-performing stocks next year — or even next week. Investing in individual stocks is inherently risky and should be done with caution. California-based Sunrun is a leading solar equipment manufacturer of residential solar energy systems. In 2020, the company acquired rival Vivint Solar, gaining a further foothold in the sector. Like its peers, the group has been benefiting from a rapidly growing industry.