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10 Best Wind Energy and Renewables Stocks to Buy in 2021

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·10 min read
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In this article, we will take a look at the 10 best wind energy and renewables stocks to buy in 2021. You can skip our comprehensive analysis of these companies and go directly to the 5 Best Wind Energy and Renewables Stocks to Buy in 2021.

The wind energy market is expected to be worth more than $180 billion within the next six years and is forecast to cross 120 gigawatts in installation capacity as investments in renewable power generation increase globally and governmental policies designed to decrease carbon emissions gradually lead to a shift away from fossil fuels. Delaware-based research firm Global Market Insights projects that increased electricity demand will lead to a more than 1% compound annual growth rate for large wind energy farms through to 2027.

US President Biden, in his first few months in power, has already pledged to increase spending on clean energy, reduce the carbon footprint of the American manufacturing industry, and re-enter Washington into global climate accords. One of the firms that could get a major boost from the new policies is Brookfield Renewable Partners L.P. (NYSE: BEP), a multinational clean energy business. Brookfield Renewable Partners L.P. (NYSE: BEP) recently closed the first investment in offshore wind to build 3 gigawatts of power capacity in the coming years.

Earlier this year, Wells Fargo upgraded Brookfield Renewable Partners (BEP) and Brookfield Renewable Corp. (BEPC) to Equal Weight from Underweight with respective price targets of $42 and $47. On May 5, Brookfield Renewable Partners (NYSE:BEP) declared a quarterly dividend of $0.3038 per share, in-line with the previous one. Forward dividend yield for the stock is 3.24%

Another company to keep an eye on in the renewable sector is Tesla, Inc. (NASDAQ: TSLA), whose billionaire owner, Elon Musk, last week made an appearance on popular entertainment show Saturday Night Live to market his business activities. Tesla, Inc. (NASDAQ: TSLA) recently posted record energy storage sales for the first three months of 2021 and has announced that a cross-country charging network for electric vehicles owned by the company will be shifting 100% to renewable energy soon. After smashing the Street estimates for Q1, Tesla (NASDAQ:TSLA) is on track to post record numbers for the second quarter. Wedbush’s Dan Ives recently said that Tesla, Inc. (NASDAQ: TSLA) can “comfortably” surpass 200,000 units for delivery in the period despite chip shortages and production issues. The analyst thinks that the demand for EVs in China is strong for Tesla and other EV players.

In the wind energy business, TPI Composites, Inc. (NASDAQ: TPIC) is also a stock worth watching over the next few months. TPI Composites, Inc. (NASDAQ: TPIC) makes and sells equipment, including wind blades, for wind farms. In the quarterly results posted this month, the firm reported net sales had increased by $48 million to $404 million, a 13.5% increase when compared to net sales of $356 million over the same period in 2020. Of the total increase in net sales, wind blades alone accounted for $42 million, representing a 12.7% year-on-year growth.

Renewable power generation helps countries across the globe meet sustainable development targets whilst providing affordable energy solutions. A key factor that investors should keep in mind when investing in wind power is that onshore wind farms are cheaper compared to offshore ones and onshore generation is one of the cheapest renewable options in the market. Wind turbines are also a growing business within the sector. However, supply chain disruptions due to the COVID-19 pandemic have hit the onshore wind industry in recent weeks.

The renewable energy sector has also been disrupting other markets associated with it, like the finance world. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

top 10 energy sector stocks for 2021
top 10 energy sector stocks for 2021

10 Best Wind Energy and Renewables Stocks to Buy in 2021

With this context in mind, here is our list of 10 best wind energy and renewables stocks to buy in 2021.

Best Wind Energy and Renewables Stocks to Buy

10. Avangrid, Inc. (NYSE: AGR)

Number of Hedge Fund Holders: 10

Avangrid, Inc. (NYSE: AGR) is a Connecticut-based energy company founded in 1852. It is placed tenth on our list of 10 best wind energy and renewables stocks to buy in 2021. The firm generates and distributes electricity and engages in the sale of natural gas as well. It also runs renewable energy generation facilities like onshore wind, solar, biomass, and thermal power. Avangrid stock has returned more than 21% to investors over the past year. The firm serves more than 3 million electricity customers primarily through wind power.

On May 3, Avangrid, Inc. (NYSE: AGR) posted earnings results for the first three months of 2021, reporting a revenue of close to $2 billion, up 10% compared to the same period last year and beating market estimates by more than $150 million.

At the end of the fourth quarter of 2020, 10 hedge funds in the database of Insider Monkey held stakes worth $64 million in the firm, down from 11 the preceding quarter worth $34 million.

9. Dominion Energy, Inc. (NYSE: D)

Number of Hedge Fund Holders: 47

Dominion Energy, Inc. (NYSE: D) is a Virginia-based power company placed ninth on our list of 10 best wind energy and renewables stocks to buy in 2021. It was founded in 1983. The firm generates and distributes electricity to residential, commercial and industrial clients. It serves more than 7 million customers. Dominion Energy, Inc. (D) owns and runs two wind power farms and is also exploring the acquisition of an offshore wind farm on the Virginian coast. Construction on the project is expected to commence in 2024.

Dominion Energy, Inc. (NYSE: D) announced on May 4 that regulators in the United States had approved a request by the power company to extend the operating license for a nuclear power plant in Virginia for another two decades. The license was set to expire in 2032.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Dominion Energy, Inc. (NYSE: D) with 2.8 million shares worth more than $213 million.

8. Public Service Enterprise Group Incorporated (NYSE: PEG)

Number of Hedge Fund Holders: 28

Public Service Enterprise Group Incorporated (NYSE: PEG) is a New Jersey-based energy company. It is ranked eighth on our list of 10 best wind energy and renewables stocks to buy in 2021. The firm distributes electricity and gas to customers in the North Eastern part of the US. It also owns and operates nuclear, gas, and renewable generation facilities. Public Service Enterprise Group Incorporated (NYSE: PEG) stock has returned more than 30% to investors over the past year. The company has a market cap of more $31 billion.

Public Service Enterprise Group Incorporated (NYSE: PEG) posted earnings results for the first three months of 2021 on May 5 and reported a revenue of $2.89 billion, a 4% increase from the revenue over the same period last year.

At the end of the fourth quarter of 2020, 28 hedge funds in the database of Insider Monkey held stakes worth $374 million in Public Service Enterprise Group Incorporated (PEG), up from 23 in the preceding quarter worth $406 million.

7. Eversource Energy (NYSE: ES)

Number of Hedge Fund Holders: 24

Eversource Energy (NYSE: ES) is a Massachusetts-based power company founded in 1966. It is ranked seventh on our list of 10 best wind energy and renewables stocks to buy in 2021. Eversource Energy (ES) distributes electricity, water and natural gas. It also has stakes in the solar and wind energy business. Eversource stock has returned more than 9% to investors over the past twelve months. Last year, the company told investors that it expected to have 1,714 megawatts of offshore wind power capacity operational by the end of 2024.

In February, Eversource Energy (NYSE: ES) posted financials for the fourth quarter of 2020, reporting a revenue of $2.23 billion and earnings per share of $0.85. The revenue figure beat market estimates by $130 million and was up more than 8% year on year.

Like Tesla, Inc. (NASDAQ: TSLA) and Brookfield Renewable Partners (NYSE:BEP), Eversource Energy (NYSE: ES) is one of the best wind energy and renewables stocks to buy.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Zimmer Partners is a leading shareholder in the firm with 1.2 million shares worth more than $109 million.

6. General Electric Company (NYSE: GE)

Number of Hedge Fund Holders: 69

General Electric Company (NYSE: GE) is a Boston-based electricity-generating and distribution firm with stakes in several other businesses like electronics, aviation and health. It is ranked sixth on our list of 10 best wind energy and renewables stocks to buy in 2021 and was founded in 1892. General Electric Company (NYSE: GE) has increased focus on renewable power generation in recent years and the wind turbines it develops are the best in the industry for onshore and offshore electricity generation. GE stock has returned more than 114% to investors in the past year.

Like TPI Composites, Inc. (NASDAQ: TPIC), Tesla, Inc. (NASDAQ: TSLA) and Brookfield Renewable Partners (NYSE:BEP), GE is one of the best renewable stocks to buy now.

On April 27, General Electric Company (NYSE: GE) posted a revenue of more than $17 billion for the first quarter of 2021, down more than 12% compared to the same period last year, and missing market estimates by more than $350 million.

At the end of the fourth quarter of 2020, 69 hedge funds in the database of Insider Monkey held stakes worth $5.6 billion in the firm, up from 45 in the previous quarter worth $2.7 billion.

In its Q1 2021 investor letter, Longleaf Partners Fund highlighted a few stocks and General Electric Co (NYSE:GE) is one of them. Here is what the fund said:

"General Electric (GE) (22%, 1.50%), the revitalized Aviation, Healthcare and Power conglomerate, was a top contributor following on its strong 4Q 2020 performance. Fourth-quarter Healthcare results were excellent, with revenues up 6% year-over-year (YoY), operating margins up 3% to 20% and strong FCF conversion. The Power and Renewables segment improved margins due to strength from gas plant services. With flight traffic increasing, Aviation appears likely to begin a multi-year recovery in the second half of this year. GE also swapped its aircraft leasing operations to AerCap for a 46% stake in the combined company, intelligently wrapping up its previously troubled GE Capital financing operations and further decreasing overall leverage. We continue to be impressed by the turnaround work of CEO Larry Culp, and the stock remains discounted against the quality of the three core business segments.”

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Disclosure: None. 10 Best Wind Energy and Renewables Stocks to Buy in 2021 is originally published on Insider Monkey.