April 16, 2021 6 min read
This story originally appeared on StockMarket
Is it worth investing in these top renewable energy stocks now?
Given the current state of the world, renewable energy stocks could be hot stocks to buy now. This could of course be the case given the current situation with global warming and climate change. If anything, the leap to clean energy is becoming more of a necessity every day. As a result, governments around the world have and are devoting more resources to the clean energy industry. This is evident from the emphasis on clean energy solutions on President Biden's $ 2 trillion infrastructure bill. In fact, the US Energy Information Administration estimates that renewable electricity generation will increase to 21% this year. With all this tailwind, investors today could be looking for the best renewable energy stocks on the stock market.
For example, some of the top solar energy stocks are already sitting on massive profits. We just have to look at Daqo New Energy (NYSE: DQ) and Enphase Energy (NASDAQ: ENPH) to see this. The DQ share in particular has risen by over 500% in the past year. With numbers like this, it would only make sense for investors to add renewable energy stocks to their watch lists. If you're looking to do the same, here are four hot renewable energy players you should know about by now.
Top Renewable Energy Stocks To See Now
QuantumScape Corp.
QuantumScape is a renewable energy company focused on solid state lithium batteries. The batteries are primarily designed for the electric vehicle market. The company could be on the verge of developing a next-generation battery. The company is also supported by Bill Gates, co-founder of Microsoft (NASDAQ: MSFT), and Volkswagen (OTCMKTS: VWAGY). QuantumScape's battery technology is groundbreaking as it has a much higher energy density than conventional batteries. It also allows for a quick charge with no adverse effects and can be charged up to 80% in less than 15 minutes.
Source: TD Ameritrade TOS
Despite the improvements in energy density and life of lithium-ion batteries over the past decade, EV cells still lag behind internal combustion engines on some performance metrics. Most electric vehicles have a range of less than 300 miles and take more than an hour to charge their batteries. These batteries also pose a serious safety hazard due to their flammable materials.
Last month, the company announced that it had reached Volkswagen's technical milestone, clearing the way for an additional $ 100 million investment. The additional funding should be enough for QuantumScape to bring its revolutionary battery technology into mass production. Given all of this, will you consider QS shares a buy?
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SunPower Corporation
SunPower is a company that specializes in solar power generation and energy storage. The company develops an all-in-one solution for residential and business premises for customers. It offers industry leading customer service and one of the most comprehensive guarantees. SunPower has more than 35 years of experience in the solar industry and has a diversified portfolio of leading solutions for residential, commercial and solar storage. The SPWR share has risen by over 500% in the past year.
Source: TD Ameritrade TOS
In February, the company announced its fourth quarter and fiscal 2020 financial results. What's impressive is that the company saw a 65% increase in commercial and industrial solutions sequentially. It also posted net income of $ 412 million. 2020 was a year of transformation for the company as it completed the spin-off from Maxeon.
This has significantly improved SunPower's financial performance and quickly changed its sales strategy to meet increasing US demand as consumers and businesses want to create and store their own energy. The company ended the year with $ 232.8 million in cash. Could this make SPWR stocks worth adding to your portfolio?
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Plug Power Inc.
Plug Power is a renewable energy company developing hydrogen fuel cell systems to replace traditional batteries in devices and vehicles that run on electricity. In essence, it is a leading supplier of clean hydrogen and zero emission fuel cells that are both inexpensive and reliable. The PLUG share rose by over 400% in the past year. During the same period, the company announced several partnerships and made strategic acquisitions.
Source: TD Ameritrade TOS
In its fourth quarter financial data released in February, the company reported gross bills of $ 337 million for 2020, up 42.5% year over year. The year ended with $ 5 billion in cash to implement its global growth strategy and goals.
What is impressive is that Plug Power is also on track to meet its recently raised financial targets for 2021 and 2024. The company had also acquired United Hydrogen and Giner ELX. This would position Plug Power as a completely vertically green hydrogen production company. Ultimately, the company's green hydrogen strategy could position it as an industry leader in the $ 10 trillion hydrogen economy. All in all, are you going to buy PLUG shares?
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FuelCell Energy Inc.
At the top of our list is the appropriately named fuel cell energy company FuelCell Energy. In short, the company designs, manufactures, operates and services direct fuel cell power plants. Overall, FuelCell's services would play a critical role in the country's transition to clean energy. In particular, its renewable energy solutions can utilize intermittent sources of mixed clean energy. This means that FuelCell's offerings can run on multiple types of clean energy at the same time. Given the versatility of its technology, it might be worth watching FCEL stock amid the growing clean energy market. However, FCEL stock appears to be on a downward trend this year, despite still seeing gains of over 450% over the past year. Could now be the time to buy on the go?
Source: TD Ameritrade TOS
For one thing, FuelCell didn't sit idly by. The company has been a member of Hydrogen Europe (HE) since last month. What is he? Well, it is the leading European association that represents the interests of the hydrogen and fuel cell industry and its stakeholders. Through this community, FuelCell works with major companies in the industry to significantly advance and accelerate the hydrogen economy.
For one, FuelCell would bring more than half a century of fuel cell development experience. Should FuelCell play its cards here, the company could theoretically even expand its presence in the European market. With that in mind, would you say it is worth investing in FCEL stocks now?