It has been a remarkable year for renewable energy stocks so far. They are amongst the top-performing sectors in the stock market. It is no surprise that top renewable energy stocks have outpaced the broader energy industry in 2020. This is because, with the ever-growing threat of climate change, renewable energy is a key focus for both world governments and investors alike.
Speaking of governments, renewable energy investors were definitely relieved when Joe Biden won the U.S. presidential race back in November. Being a strong advocate in the fight against climate change, Biden has a lot in store for the country’s green initiatives. Firstly, Biden has pledged to rejoin the Paris Agreement and achieve economy-wide net zero emissions by 2050. Second, there are also plans to achieve zero-carbon electricity generation in the U.S. by 2035. His pledge of $400 billion in investments for his first term would see the acceleration of the clean energy industry. Moreover, the recent $900 billion U.S. stimulus package also allocates over $11 billion in funding for renewable technology and energy efficiency. With this huge support from the government, we could be looking at major tailwinds for the industry.
We can already see that some of the best renewable energy stocks to buy are soaring this year. SolarEdge (SEDG Stock Report) and JinkoSolar (JKS Stock Report) have seen their share prices jump by over 200% year-to-date. As lucrative as the stocks may seem, investors will still need to choose wisely when looking to build their renewable energy portfolios. With all the intense competition amongst countless companies in the industry, it can be a challenge to do so. Could these renewable energy stocks bring you big gains in 2021?
- 3 Top E-Commerce Stocks To Watch Before Christmas
- Should Investors Consider These Battery Stocks Instead Of EVs? 3 Names In Focus
First off, we will be looking at SunPower (SPWR Stock Report). SunPower is a California-based energy company that designs and manufactures crystalline silicon photovoltaic cells and solar panels. Its products are mainly marketed to residential, business, government, and utility customers. Notably, SPWR stocks have shot up by 20% since the start of the trading week. Aside from the recent U.S. stimulus bill approval, investors may be curious as to what caused this spike.
On December 21, news broke that the company will be working on a $56 million project at JFK Airport in New York. SunPower will be installing a parking lot canopy with solar panels and a battery storage system at the airport. New York’s Port Authority Board of Commissioners approved the 12.3 Megawatt (MW) solar energy system. This marks the largest solar canopy power project in the state to date. The project will commence next year and is slated for completion in 2022. Investors would have been pleased to hear this news as it means that SunPower will be busy going into 2021.
To add to that, the company also reported some positive news in its recent quarter fiscal report. In it, SunPower reported $274 million in total revenue for the quarter. At the end of the quarter, the company had cash on hand of $324 million. Should SunPower make the most of its resources, investors could be looking to bank in on SPWR stock. Will you be doing the same?Top Renewable Energy Stocks To Watch Ahead Of 2021: Canadian Solar Inc.
Next up, we have Canadian Solar (CSIQ Stock Report). The Ontario-based solar energy company manufactures solar photovoltaic (PV) modules and runs large scale solar projects. It has production facilities in Canada, China, Indonesia, Vietnam, and Brazil boasting an annual production capacity of over 500MW. This week alone, CSIQ stocks have soared over 20% to a new all-time high. In light of this, I say we take a closer look at what Canadian Solar has been up to.
On December 22, the company completed the sale of a 290 MW solar portfolio to Italy-based Falck Renewables. Canadian Solar expects revenues from the sale to be recognized by the fourth quarter of its fiscal 2020. CEO Shawn Qu said, “We are pleased to have partnered with Falck Renewables in this initiative which allowed us to broaden our portfolio in Italy and has brought development progress to our projects.” He went on to explain, “We are excited about the opportunities in Italy, which represents one of Canadian Solar’s strongest core markets in the EMEA region, and expect to gain market share and solidify our position as one of the leading players in the Italian solar PV market.” With the company firing on all cylinders, it is no wonder that investors are flocking to CSIQ stock.
Its recent quarter fiscal report also provides further reason for this. In November, the company reported a 20% year-over-year rise in total revenue. Additionally, it ended the quarter with $1.1 billion in cash which marks a 109% increase from a year ago. With a growing portfolio and the funds to back it up, do you think CSIQ stock is worth watching?Top Renewable Energy Stocks To Watch Ahead Of 2021: Enphase Energy Inc
Last but not least, we have Enphase (ENPH Stock Report). Enphase is a California-based energy tech company. It designs and manufactures software-driven home energy solutions. These are marketed to homeowners in a conveniently designed solar power system controlled by a smartphone app. More importantly, the company’s stocks have skyrocketed by over 500% year-to-date. Investors may be watching it closely to see if it can keep up this momentum.
In its third-quarter fiscal posted in October, the company brought in $178 million of revenue for the quarter. It also ended the quarter with $661 million in cash on hand. This reflects a 225% year-over-year rise. The company cites two key contributors to its success for the quarter. Namely, significant revenue from its Encharge storage systems and strong demand for its core microinverter products. This is expected as homeowners seek means of making meaningful home-improvements during the months spent in quarantine before this. With an increase in productivity from its core businesses, it is understandable that the company has been on investors’ radars.
For one thing, Enphase appears to be ending 2020 strong. This is after considering its recent network launch in Australia together with the tailwinds from the U.S. stimulus package news. It would be an understatement to say that the company is kicking into high gear moving forward. However, there could be a question amongst investors. That is, could ENPH stock have more room to grow in 2021? Your guess is as good as mine.