As the curtain opens in 2024, the focus on climate change and renewable energy intensifies. The International Energy Agency’s World Energy Outlook 2023 reveals a future where renewable sources will make up 50% of the global electricity mix by 2030. Hence, the shift toward a greener future is accelerating, and even after a tough year, renewable energy stocks are ready for a resurgence.
Moreover, driven by the urgent need to address climate change, governments worldwide are progressively embracing renewable energy. This gradual yet accelerating shift benefits renewable energy companies significantly. This results in firms seeing enhanced revenue and profitability, making them increasingly attractive in today’s investment landscape.
As inflation eases and rate cuts loom, it’s an ideal moment to invest in renewable energy stocks. Previously underappreciated, these stocks are rising as strong contenders in a recovering economy. Investing in renewable energy aligns with a sustainable future and offers growth opportunities in an increasingly vital sector of our global energy story.
First Solar (FSLR)
Despite 2023’s harsh climate for clean energy stocks, First Solar (NASDAQ:FSLR) has marched forward with considerable aplomb. The company is flourishing, with a $1.1 billion manufacturing site planned in Louisiana and a notable 15-year Power Purchase Agreement for its new Tamil Nadu, India facility.
Financially, First Solar’s recent quarter was a testament to its robust growth. The company surpassed expectations by reporting a revenue surge to $801 million, marking a 27.37% year-over-year increase. Its earnings per share climbed to $2.5, beating estimates by $0.46, and net income skyrocketed by 645.8%. Moreover, First Solar boasted an impressive backlog of 81.8 GW, showcasing its substantial market demand.
Furthermore, First Solar showcased its market resilience during a slowdown in the solar panel market. Echoing this positive outlook, TipRanks analysts give First Solar a Moderate Buy rating and highlight a significant 57.7% upside potential, indicating its bright future and further success.
NRG Energy (NRG)
NRG Energy (NYSE:NRG) stands out in the renewable energy sector for its commitment and robust financial performance. The company’s dedication was evident, with a substantial $1.15 billion share buyback in 2023 and an impressive 69% increase in share price over the past year. These moves underline NRG’s strong financial footing and confidence in future growth.
Moreover, NRG reported a robust GAAP net income of $343 million, marked by a lucrative $1.75 billion sale of STP. Emphasizing its progressive strategy, NRG’s current capital allocation plan commits $1.16 billion to shareholders and $500 million to reduce debt, underscoring its dedication to maximizing shareholder value.
Complementing these achievements, NRG’s recent Senior Notes Offering of up to $600 million strategically optimizes its debt structure. Additionally, through its Direct Energy subsidiary, NRG reinforces its commitment to sustainability by renewing ties with the Western Pennsylvania Energy Consortium, contributing significantly to Pittsburgh’s sustainability goals.
Brookfield Renewable Partners (BEP)
Brookfield Renewable Partners (NYSE:BEP), a dominant force in the renewable energy market, manages over $800 billion in assets. With over 50% market share, their extensive portfolio boasts around 31,800 megawatts of installed capacity and a forward-looking development pipeline of approximately 143,400 megawatts. Recently, they revamped their Green Financing Framework, enhancing fund allocation, reporting impact and ensuring independent assurance on fund use.
Moreover, BEP excels with Consistently achieving over 10% annual growth in funds from operations. In their latest quarter, they reported $1.18 billion in revenue, exceeding expectations by $3.9 billion. Their Funds From Operations rose to $253 million, a 7% increase from the previous year. Additionally, they progressed well in development, commissioning about 2,200 megawatts of capacity year-to-date.
Furthermore, TipRanks analysts view Brookfield Renewable positively, giving it a Moderate Buy rating with a 7.24% upside potential. This optimism stems from the company’s strong financials and dedication to renewable energy.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
