Should You Buy These 10 Most Popular Green Energy Stocks?

Trending and Popular Renewable Energy Stocks - a windmill

The Inflation Reduction Act of 2022 is likely the most consequential climate change legislation ever enacted by the U.S. government. With incentives and tax credits offered in the Act, the U.S. renewable energy sector is primed to experience explosive growth.

In addition, the International Energy Agency has set a roadmap for 90% of global energy production to come from renewable sources by 2050

While inflation-resistant investments like Gold and Silver may be the flavor of the month, this is a great time to research potential green energy stocks to add to your portfolio as the market bounces back. 

Read below for the top 10 trending renewable energy stocks, based on an analysis of worldwide Google searches compiled by CMC Markets. We have also provided interesting facts about each company to ease your decision-making.

 

1. Tesla (TSLA)

Searches per Month: 7,870,000

Current Share Price: $289.83 

Tesla is the most searched renewable energy stock worldwide, with more than 18 times as many searches as the second most popular stock. While most of us are familiar with Tesla’s electric vehicles, a large part of the stock’s popularity is also due to its founder, Elon Musk

Besides the ultra-popular electric cars, Tesla’s products include solar panels and batteries for green energy generation and storage. As the leading electric car manufacturer in the world, Tesla’s popularity is sure to keep it on the top of this list for years to come. 

Consider this before you buy: 

  • The stock took off on a stellar run during the pandemic and was part of nearly every investor’s trading strategy
  • Tesla’s stock price has dropped as part of the more prominent tech sell-off in 2022. With interest rates rising, companies with a rich, forward price-to-earning ratio are prime targets for further correction. Tesla is trading at around a PE of 65. 
  • Yahoo Finance analysts had a BUY consensus in August 2022. That has come down in September, most trending to a HOLD rating.
  • Tesla closed out 2021 with record revenue and profit numbers.  

 

2. Gevo (GEVO)

Searches per Month: 425,000 

Current Share Price: $2.35 

Gevo, a lesser-known Colorado company, has patented technology to produce fuel from renewable hydrocarbons.

Gevo may be poised for fast growth, having been funded by the U.S. Department of Agriculture as part of an initiative to create low carbon intensity corn and sustainable aviation fuel. 

Consider this before you buy: 

  • Not many analysts cover Gevo yet, but the consensus is a BUY rating with a price target comfortably above today’s levels.
  • Besides the Department of Agriculture project, Gevo signed a 5-year deal with Alaska Airlines to supply 37 million gallons of sustainable aviation oil.

 

3. Plug Power (PLUG)

Searches per Month: 319,000

Current Share Price: $23.94

Plug Power operates out of New York and creates green power out of hydrogen.  

How? The company uses an electrolyzer powered by renewable energy sources like solar, wind, or water to capture Hydrogen. This captured hydrogen then powers electric vehicles, homes, and businesses with nearly zero emissions. 

With hydrogen power expected to finally become cost-effective and turn into an $11 trillion market, there is considerable buzz around Plug Power as a leading player in this market. 

Consider this before you buy: 

  • PLUG shares have trended downward due to the emergence of Loop, a Canada-based competitor that is promising similar technology but at a lower price and more efficiency. Loop’s technology (as with most Hydrogen fuel cell companies) still needs to be proven.
  • Analysts have a consensus rating of BUY with an average price target of $37.43.
  • Plug Power has supply deals with some major companies, including Amazon.

 

4. Sunrun (RUN)

Searches per Month: 54,000

Current Share Price: $32.50 

Founded in 2007, Sunrun provides photovoltaic systems that capture solar power to produce renewable energy. 

The company’s power purchase agreement includes installing and maintaining solar panels on customers’ homes at no upfront cost. Sunrun then sells back energy to the customer at an agreed rate for 20-25 years. 

Consider this before you buy: 

  • Sunrun is one of the many renewable energy companies that are set to benefit from tax credits and incentives outlined in the Inflation Reduction Act. 
  • The company posted record quarterly revenue in Q3 2022.
  • The average analyst consensus is a BUY with an average price target of $48.74.

 

5. Bloom Energy (BE)

Searches per Month: 49,000 

Current Share Price: $22.86

Bloom Energy, headquartered in San Jose, California, is a leading fuel cell manufacturer that converts natural gas or hydrogen into electricity without combustion. 

Like Sunrun or Plug Power, Bloom Energy sells renewable electricity to consumers with the promise of nearly zero emissions.  

Consider this before you buy: 

  • CEO K Sridhar recently sold 11,500 shares of BE.
  • The Inflation Reduction Act signed by President Biden includes huge incentives for clean energy, which can benefit Bloom Energy and most other companies on this list. 
  • Bloom Energy reported record second-quarter revenue and bagged a fuel cell contract with Ferrari. It counts major companies like Walmart and Adobe as customers. 
  • Yahoo Finance analysts have a consensus rating of Hold.

 

6. SunPower (SPWR)

Searches per Month: 46,000 

Current Share Price: $25.18 

Like some other renewable energy stocks on this list, SunPower provides photovoltaic systems, batteries, and software to homeowners in 50 U.S. States

SunPower’s panels are designed to be more efficient than some of its competitors due to a patented design that reduces the amount of reflected sunlight and maximizes absorbed energy. 

Consider this before you buy: 

  • SunPower has been generating news by introducing a new lineup of batteries and expanding into commercial power generation. 
  • Revenue increased in Q3 2022 but so did losses. 
  • Analysts have a consensus rating of HOLD with an average price target of $24.69.

 

7. Cielo Waste Solutions (CMC.V)

Searches per Month: 41,000 

Current Share Price: $0.07 CAD 

Cielo Waste Solutions is a Canadian company focused on transforming the abundance of organic and other household waste into renewable diesel without producing harmful emissions. 

The company applies a catalytic process to transform waste into liquid. This liquid is then heated to high temperatures, distilled, and heated at different temperatures to produce lower-carbon diesel and kerosene. 

Consider this before you buy: 

  • CMC is a highly volatile penny stock with barely any analyst coverage.
  • The Globe & Mail recently ranked CMC the most undervalued industrial stock on the Toronto Stock Exchange.

 

8. SolarEdge Technologies (SEDG)

Searches per Month: 35,000

Current Share Price: $270.94 

Yet another solar energy company to make this list, SolarEdge, is an Israeli company that develops and sells solar inverters.

The company has figured out a patented way to maximize the amount of energy extracted from each solar panel. 

What gives SolarEdge the ‘edge’ is its’ suite of smart energy management solutions, which customers can install without any hardwiring. Customers can monitor and control their energy use using an app. 

Consider this before you buy: 

  • SEDG has missed its EPS targets over the last few quarters, but revenue is increasing at a fast pace.
  • SolarEdge Technologies will benefit from the Inflation Reduction Act as some other companies on this list. The analysts remain bullish with an overall BUY rating and a price target of $357.50. 

 

9. NextEra Energy (NEE)

Searches per Month: 32,000

Current Share Price: $83.54  

After a bunch of promising but relatively unknown companies dominating the search trends, NextEra Energy is right up there with Tesla. 

NextEra is the largest producer of wind and solar power in the world. It is also a giant electric utility holding company with a market capitalization of $164 billion

NextEra owns several subsidiary businesses, including the third largest electricity provider in the U.S., Florida Power & Light, which supplies electricity to over 12 million people

Consider this before you buy: 

  • NextEra is a low Beta stock, with analysts rating it as one of the best buys as a defense against rising rates and inflation. 
  • Q2 profit is sharply higher than Q1.
  • The consensus analyst rating is a BUY with an average price target of $96.99.

 

10. Vestas Wind Systems (VWS)

Searches per Month: 28,000 

Current Share Price: $150.28

Operating since 1979, Vestas Wind Systems generates over 145 GW of electricity across 85 countries, including Germany, the Netherlands, Australia, and the U.S. It is one of the largest manufacturers of wind turbines in the world. 

Vestas is one of the most prominent players in the alternative energy market, with several analysts tipping it to outperform due to the energy crisis in Europe. 

Consider this before you buy: 

  • In August 2022, VWS CEO promised increasing profit margins and reduced costs. Shares jumped on the news, but the ongoing Russia-Ukraine war can keep raw material prices high in the short term. This can affect profit margins.
  • The general consensus amongst analysts is BUY.

 

Featured Image Credit: Pexels.

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Ash & Pri

Ash & Pri are the Founders of AshandPri.com and have spent the last decade building their way towards financial freedom and a lifetime of memories. Having successfully achieved their early retirement goal in under 10 years, they look forward to sharing their financial sense with like-minded people. Read more about Ash & Pri in the 'About Us' section.