11 best wind and solar stocks to buy

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In this article, we’ll look at the top eleven wind and solar stocks to buy. For more action, go to 5 best wind and solar stocks to buy.

The race towards a renewable future where emissions for humanity’s energy needs do not cause climate change has spurred investment in new forms of energy that use freely available resources to generate electricity. Wind, solar and geothermal energy are examples of these forms of energy, and all have the advantage of being climate-friendly. While coal and crude oil have fueled humanity thus far and enabled the benefits of industrialization, the tide is now turning towards renewable energy, especially as 2022 impresses everyone with the fragility of the global crude oil supply chain.

Although not as large as crude oil or coal markets, the wind and solar energy segments are still worth billions of dollars. Moreover, since they are relatively underdeveloped, they have much more optimistic growth estimates compared to oil, which is one of the most developed industries in the world. For example, a research report from Allied Markets Research points out that global wind energy was worth $62 billion in 2019. By then until 2027, it will grow at a compound annual growth rate (CAGR) of 9.3% and will be around $127 billion by the end of the forecast period.

Some driving factors for this growth are the push towards renewable energy and the fact that wind power is much more efficient than fossil fuels; while others, such as the high costs of installing wind turbines and their vulnerability to storm damage, are headwinds. Asia-Pacific accounted for the largest share of revenue, as countries like India and China focus on reducing their emissions, and Europe will be the fastest growing region by CAGR of 10.7% which will exceed the entire industry. Additionally, industrial users have shown the most interest in wind power, as it can often bring electricity to remote and isolated areas.

Moving towards solar, the segment was valued at $170 billion in 2020, according to Fortune Business Insights. It goes on to state that of the $184 billion the industry was worth in 2021, it will grow at a CAGR of 6.9% and be worth $293 billion by the end of 2028. This growth comes after that the industry has contracted during the coronavirus pandemic.

Today’s article will focus on solar and wind energy companies, and will include companies that manufacture equipment for the industry as well as those that harness alternative energy sources. Some of the top picks are Berkshire Hathaway Inc. (NYSE:BRK-A), Tesla, Inc. (NASDAQ:TSLA) and Enphase Energy, Inc. (NASDAQ:ENPH).

11 best wind and solar stocks to buy

Pixabay/Public Domain

Our Methodology

We studied the solar and wind energy industries to see which companies provide their services and products. Selected companies are ranked based on hedge fund holdings collected via Insider Monkey’s Q3 2022 survey of 920 funds.

11 best wind and solar stocks to buy

11. Vestas Wind Systems A/S (OTCMKTS: VWDRY)

Number of Hedge Fund Holders: N/A

Vestas Wind Systems A/S (OTCMKTS: VWDRY) is a Danish wind turbine company. The company manufactures and sells wind power plants and other equipment. It also provides support services for its products and is headquartered in Aarhus, Denmark.

Vestas Wind Systems A/S (OTCMKTS: VWDRY) has a strong business model, through which it has carefully divided its operations into partial equipment sales and partial maintenance contracts. This allows the company to earn money by maintaining the equipment even when the sentiment to invest in wind energy is weaker. Vestas Wind Systems A/S (OTCMKTS: VWDRY) has 138 gigawatts of active wind service contracts and an average term of 10 years per contract, providing it with a stable revenue stream. Additionally, the company also has an equipment backlog of $18.6 billion and a larger service contract backlog of $30.8 billion – both of which provide it with order flow. stable.

Vestas Wind Systems A/S (OTCMKTS: VWDRY) joins Tesla, Inc. (NASDAQ: TSLA), Berkshire Hathaway Inc. (NYSE: BRK-A) and Enphase Energy, Inc. (NASDAQ: ENPH) in our list of best stocks solar and wind turbines.

10. Northland Power Inc. (OTCMKTS: NPIFF)

Number of Hedge Fund Holders: N/A

Northland Power Inc. (OTCMKTS: NPIFF) is a Canadian company that generates electricity from renewable energy sources. These include wind, solar, natural gas and hydropower. The company is headquartered in Toronto, Canada.

Northland Power Inc. (OTCMKTS:NPIFF) aims to grow its operating profit by a solid CAGR of 7% to 10% between 2022 and 2027. The company aims to do this by investing in new projects that will increase the life of its contract of an average of ten to fourteen years to enable it to generate between $1.7 billion and $1.9 billion in operating income in 2027. % annual growth compared to the quarter of the last year. Additionally, it also nearly doubled its adjusted free cash flow per share to $0.28 in Q3 2022 from $0.15 per share in Q3 2021.

9. Siemens Energy AG (OTCMKTS: SMNEY)

Number of Hedge Fund Holders: N/A

Siemens Energy AG (OTCMKTS: SMNEY) is a German company which is one of the oldest of its kind since it was established in 1866 and is headquartered in Munich. The company sells equipment such as steam and gas turbines, electrical systems, connectors for offshore wind farms, wind turbine designs and wind farm maintenance services.

The Gamesa segment of Siemens Energy AG (OTCMKTS: SMNEY) is the largest, accounting for 36% of the company’s revenue. This segment focuses on wind energy and aims to grow its non-Chinese wind installation by a CAGR of 28%. In its fourth fiscal quarter of 2022, Siemens Energy AG (OTCMKTS: SMNEY) recorded 38 billion euros in orders for the full fiscal year, which marked an annual growth of 12% at a time where Europe was struggling with record levels of inflation. Gamesa services revenue increased 14% to €2.2 billion, and the segment also had strong backlogs worth €17.8 billion for the services segment. services.

8. Ørsted A/S (OTCMKTS: DNNGY)

Number of Hedge Fund Holders: N/A

Ørsted A/S (OTCMKTS: DNNGY) is a Danish company that builds, develops and operates onshore and offshore wind and solar farms. Its headquarters are located in Fredericia, Denmark, with facilities in the UK, Denmark, Germany, the Netherlands and the United States.

Ørsted A/S (OTCMKTS: DNNGY) is the world’s largest onshore wind farm company. The company is a Danish public company and has transformed its business from coal dependence to becoming a leader in renewable energy. Ørsted A/S (OTCMKTS: DNNGY) owns 22% of the world’s power generation capacity from offshore wind farms. Ørsted A/S (OTCMKTS: DNNGY) also has a massive portfolio, as it has a total of 29,426 megawatts of power generation capacity.

7. Brookfield Renewable Partners LP (NYSE:BEP)

Number of hedge fund holders: 19

Brookfield Renewable Partners LP (NYSE: BEP) is a Bermuda-based company that generates electricity from several renewable sources such as wind, solar and biomass. It has a capacity of approximately 21,000 megawatts and is headquartered in Hamilton, Bermuda.

In the third quarter of Brookfield Renewable Partners LP (NYSE: BEP), the company generated $243 million in funds from operations, which marked healthy annual growth of 15%. The company also has a huge development pipeline in the United States, with a total planned capacity of more than 60 gigawatts across the various sources it uses for power generation. Brookfield Renewable Partners LP (NYSE: BEP) also aims to add an additional 1,400 megawatts of capacity by the end of this year, which will increase its operating funds by $50 million.

Insider Monkey’s Q3 2022 survey of 920 hedge funds found that 19 held a stake in Brookfield Renewable Partners LP (NYSE:BEP).

Among these, that of Robert Joseph Caruso Select the action group is the largest shareholder of Brookfield Renewable Partners LP (NYSE: BEP) with 1.9 million shares worth $61 million.

6. Array Technologies, Inc. (NASDAQ:ARRY)

Number of hedge fund holders: 29

Array Technologies, Inc. (NASDAQ: ARRY) is an American company that provides solar tracking systems. These include hardware such as a single-axis tracking system and software that uses machine learning to increase energy production. The company is headquartered in Albuquerque, New Mexico.

Array Technologies, Inc. (NASDAQ: ARRY) is uniquely suited to grow alongside renewable energy because its products form the backbone of operating solar farms. The company’s torque tubes and structural fasteners will receive tax subsidies due to the Cut Inflation Act, and the company has a total of $1.9 billion worth of projects in its pipeline as of November. 2022. Additionally, the bulk of solar projects in America use single axis tracking. , which is a perfect match for the core product from Array Technologies, Inc. (NASDAQ:ARRY). According to Berkeley Laboratories, 90% of all solar power projects in 2019 used solar power tracking, so if the Cut Inflation Act ends up boosting solar more, then Array Technologies, Inc. (NASDAQ:ARRY) is uniquely positioned to benefit from growth.

In the third quarter of this year, 29 of 920 hedge funds surveyed by Insider Monkey had bought shares of Array Technologies, Inc. (NASDAQ:ARRY).

The largest investor in Array Technologies, Inc. (NASDAQ:ARRY) is Jos Shaver’s Electron Capital Partners who owns 5 million shares worth $84 million.

Along with Berkshire Hathaway Inc. (NYSE: BRK-A), Tesla, Inc. (NASDAQ: TSLA) and Enphase Energy, Inc. (NASDAQ: ENPH), Array Technologies, Inc. (NASDAQ: ARRY) is a strong wind and stock of solar energy.

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Disclosure: none. 11 best wind and solar stocks to buy is originally published on Insider Monkey.

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