In todays video, I want to have a look at the best green energy stocks for 2021.. Now green energy stocks, haven’t always lived up to the hype. Despite years of continued adoption of solar, wind, hydroelectric and other power generation sources. Investing in the underlying companies has been a turbulent ride.. Fortunately, renewable energy stocks suddenly have friends in high places. President Joe Biden plans to invest 2 trillion in clean energy initiatives over the next four years, with a loftier goal of making America a net zero emissions country by 2050.. Obviously, just how much progress he can make remains largely up to the composition of Congress, but most analysts nonetheless expect a much more accommodative Washington for green energy over the next few years.. When you think of clean energy, you typically think of solar and wind, which have the biggest market share by far, they also have the distinction of being two of the fastest growing employment sectors in the past decade.. But there are other types of green energy, biomass, geothermal and hydropower among them., Not to mention there are companies that help the green energy fight without actually producing energy. Think miners of lithium, which go into batteries that can be charged by renewable sources., So keep watching as we look at 5 green energy stocks with more upside to come in 2021., Whether they’re directly responsible for producing renewable energy or play a role in important supporting technologies. Each appears to have high potential as the new year rolls around.
, But before we get started, if you are new to my channel, please subscribe and make sure you stay to the end. So you dont miss out on any of these promising green energy stocks.. The first one up is TPI Composites.TPI Composites. One of a handful of wind energy stocks available to investors is a leading manufacturer of composite wind blades.. It supplies these blades to wind turbine manufacturers and commands nearly a fifth of all onshore wind blades sold on a megawatt basis. Globally. In 2019, the company notched a record 1.4 billion in annual net sales selling 9500 wind blades. And despite the economic upheaval of COVID 19, the pros expect the company to finish 2020, with 15 revenue growth to 1.65 billion. Of the 11 analysts that cover TPI stock 10 say it’s Buy worthy.. That includes Roth Capital. Analyst, Philip Shen, who says TPI will benefit from continued outsourcing of wind blades by wind turbine manufacturers, as well as the potential windfall from the transportation sector. Turbine blades are a key input within the wind industry’s value chain and TPI is a top player in the blade Outsourcing trend. TPI has achieved the rare feat of double digit organic top line growth every year for the past decade.. There is also more upside coming from a deal with electric bus maker Proterra, which has been a TPI customer since 2017. Proterra, which buys composite bus bodies from TPI just unveiled a transit bus that can travel 329 miles on one charge, the farthest any 40 foot bus Can travel.
The second green energy stock is Sunrun.. Sunrun was already the nation’s largest residential solar company before it agreed to buy its rival Vivint Solar in a deal worth 1.5 billion.. The acquisition which closed in October creates a rooftop solar giant that provides 75 percent of new residential solar leases each quarter. According to Bloomberg. Roth Capital, analyst, Philip Shen, says Sunrun quotis, the industry’s largest player with differentiated scale, advantages and leadership on grid services and much more.quot. He sees more upside to the stock on quotthe promise of what we believe Sunrun can become. The Power Company of the Future.quot Sunrun shares would also get a lift from a potential extension of the solar investment tax credit of 26 for residential and commercial property installations, which quotwill be very much in the cards under the Biden. Administration. Shen also notes that Sunrun’s management expects to grow faster than the industry’s projected 15 year over year. Growth in 2021., However, quothe expects Sunrun to strike the right balance between margin and growth.quot. This stock isn’t for the faint of heart. Shares have jumped 317 through early December and it’s up more than 900 over the past three years.. Stock number 3 is General Motors.. General Motors might not be the first company that comes to mind in a discussion about renewable energy stocks., But this Detroit incumbent has been pivoting its business model to achieve better sustainability. GM one of the world’s largest automakers is investing 27 billion in battery electric vehicles over The next five years.
It plans to launch 30 of these vehicles over the same time frame, says Morningstar analyst David Whiston, with two thirds of those vehicles being sold in North America.. Currently, it is selling access to its Ultium battery technology to Honda and talking to other potential customers. On November 30th, GM restructured a deal with hydrogen truck maker Nikola, in which the automaker agreed to supply its Hydrotec hydrogen powered fuel cell system.. Meanwhile, General Motors has been whipping its traditional vehicle operations into shape. Closing plants and moving hourly workers’ retiree healthcare to another fund has lowered its breakeven point.. Today the company does not have to overproduce to meet high labor costs and then dump cars in rental fleets.. Gm. Now operates in a demand, pull model where it can produce only to meet demand and is structured to do no worse than break even at the bottom of an economic cycle. When plants can be open., The result is higher profits than under the old GM. Despite lower US share., Meanwhile, the analyst community has seven Strong, Buys and seven Holds on GM shares versus just four Holds and no Sells of any kind.. Albemarle is green stock number four. Albemarle is one of the world’s top producers of lithium, which is used in batteries. For electric vehicles and mobile devices among other applications., It produces lithium from its own assets in Chile and Nevada, as well as two joint ventures in Australia.. The Chilean operation is among the world’s lowest cost sources of lithium.
According to Morningstar analyst, Seth Goldstein. Look for demand to keep rising as electric vehicles catch people’s, fancy. Sales of electric vehicles hit a record in 2019. According to a June 2020 report by the International Energy Agency. Consider that in 2010 there were only 17000 electric cars on the roads globally. By 2019. That number had grown to 7.2 million, half of which are in China. Albemarle plans to nearly double its lithium production. By the end of 2021., We expect the company to continue investing in increasing its lithium capacity after 2021, likely through acquisitions or brownfield capacity expansions.. The company also is the second largest producer of bromine in the world, which is used in flame retardants for electronics and prices of the element are going up due to increased demand for servers and auto electronics offset by lower demand from computers and oilfields. Albemarle. Also, a supplier of catalysts for the petroleum refining and chemical industries suffered a big hit to sales and profits in 2020, but both are expected to rebound in 2021.. The last green energy stock is NextEra. Energy. NextEra Energy is the world’s largest utility company., While it serves roughly 5.5 million customers in Florida across two different subsidiaries. The company also bills itself as the world’s largest generator of wind and solar renewable power.. Indeed, Morningstar analyst Andrew Bischof likes NextEra for the combination of its highly regulated Florida, utility business and fast growing renewables arm, saying it offers quotthe best of both worlds: a secure dividend and industry leading renewable energy growth, potential.
quot Bischof says NextEra’s Florida Power amp Light, like other Regulated utilities enjoys quotservice territory, monopolies and efficient scale advantages.quot And as for its renewable energy business, he pointed to a key competitive advantage. It has already secured some of the most desirable wind and solar generation sites in the country with purchase power agreements spanning at least 20 years, with quotescalatorquot clauses to protect returns.. Meanwhile, the renewable energy stock’s dividend has grown by more than 10 annually since 2011 and Bischof predicts 11 annualized payout growth for Nextera through 2024. Here’s. Another reason to like the stock NextEra announced plans to invest 65 million in a pilot project that will produce quotgreenquot hydrogen from solar power by 2023, as the company closes its last coal fired power, plant. CFO, Rebecca Kujawa, said in the company’s second quarter. Earnings call that producing quotgreenquot hydrogen presents a quotpotential significant opportunity for us.quot. Many on Wall Street have Nextera among their top green energy stocks to buy for 2021.. Currently, 13 analysts call it a Buy or Strong, Buy versus six Holds, and one Sell..