Best Buy-and-Hold Renewable Energy Stocks

Hassan Maishera - November 20, 2019

Renewable energy stocks have become a hot topic among investors over the past few years. While they were considered risky investments earlier on, renewable energy stocks have been growing in popularity in recent years.

The slow movement away from the fossil fuel-based approach to clean energy has led to an increase in demand for renewable energy sources. Companies in this sector continue to deal with rising demand for their products.

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Three Best Buy and Hold Renewable Energy Stocks

Although there are several stocks to choose from, here are the top three renewable energy stocks you should buy and hold.

NextEra Energy Inc. (NEE)

NextEra Energy, based in Florida, is perhaps the leading renewable energy company in the country. It has been one of the best-performing stocks in its sector this year, rising by 37% year-to-date. However, it could be set to rise higher due to recent developments.

The company recently completed a 74.9-MW solar project in South Carolina, using over 270,000 tracking photovoltaic solar panels. This latest development comes after the company’s earnings soar due to the enormous demand for renewable energy.

renewable energy stocks

NextEra is a leading provider of solar energy in the U.S. Above: A NextEra solar farm.

The company’s adjusted earnings for the third quarter of 2018 was $1.1 billion, surpassing the $1 billion generated in the same quarter of 2018. Their earnings per share went up by 10% to stand at $2.39.

The company recorded massive growth in its renewable energy sector. With a rising demand for renewable energy and NextEra’s capacity, this is a stock you should consider buying and holding in the current quarter.

Ormat Technologies, Inc. (ORA)

The Nevada-based renewable energy company is slowly becoming a force in the industry. Ormat Technologies’ stock has been trading close its 52-weeks high despite missing Wall Street’s earnings target for the last quarter.

The company’s revenue was up by 2.4% from the same quarter of 2018 to reach $170.5 million. The EPS for the quarter was $0.30, which is higher than the $0.21 recorded in Q3 2018. Although it missed Wall Street’s estimate of $0.33 per share, Ormat’s stock has been trading at a high of $76 per share over the past 24 hours.

Wall Street analysts expect Ormat to perform better in the current quarter. The company will release its next earnings report on February 25, 2020. According to Zacks Investment Research, Ormat should post an EPS of $0.55 for the current quarter, which would be higher than the $0.52 posted in the same quarter of 2018.

First Solar (FSLR)

First Solar is another company in the renewable energy space you should keep an eye on. The Arizona-based company’s stock is up by 25% year-to-date despite losing less than a percent at Wednesday’s pre-market session.

renewable energy stocks

Several analysts rate FirstSolar as a ‘buy’ and many have set a price target of around $70.

First Solar recent gave its full-year 2019 earnings guidance. It stands at $2.25-2.75 for the year. The EPS is within the $2.43 estimate given by Thomson Reuters’ consensus. Their revenue guidance was $3.5-3.7 billion, compared to the $3.55 billion valuations.

Several analysts have upgraded the stock over the past few days. BidaskClub considers First Solar’s stock a ‘HOLD,’ while it received a ‘BUY’ ratings from Robert W. Baird. Roth Capital also rated the stock as a ‘BUY.’ Most analysts expect First Solar’s stock price to surge past the $70 mark over the coming months.

More Buy and Hold Renewable Energy Stocks

Renewable energy companies are seeing an increase in demand due to a gradual move away from fossil fuels. Stay tuned to the Dork to keep track of breakout penny stocks. Follow Stock Dork on Twitter and Facebook to keep up with all the latest stock market news. Also, don’t forget to sign up for mobile Dork Alerts to get all the hottest stock picks, insights, and analysis delivered to your cell.

Hassan Maishera is a cryptocurrency expert and a Stock Dork freelance contibutor.

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