3 Hidden-Gem Renewable Energy Stocks Ready to Ride a Massive Market Wave
I believe that investors are missing out if they aren’t investing in hidden-gem renewable energy stocks this month. The reason is that we’re in the middle of a huge bull market since last October’s low, and there doesn’t seem to be an end in sight to it.
Investors can scoop up shares of these renewable energy stocks as a short-term momentum trade or a long-term holding. Either way, I think the specific stocks outlined in this article are great bargains and will continue to impress their owners.
So here are three renewable energy stocks to consider for February.
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Renewable Energy Stocks: JinkoSolar Holding (JKS)
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JinkoSolar Holding (NYSE:JKS) is one of the largest solar module manufacturers in the world. The company’s products include photovoltaic (PV) products manufacturing, including silicon wafers, solar cells, and solar modules.
JKS offers investors a great platform for riding the wave of enthusiasm for renewable energy stocks. For example, the company’s third-quarter financial results showed a significant increase in total revenues, gross profit, and gross margin, attributed to the growing demand for solar modules globally. Revenues rose by 63.1% year-over-year, while gross profit and gross margin also substantially increased.
Looking ahead, things are looking positive for the company. It expects shipments to be around 23.0 GW for the fourth quarter of 2023 and projects that its full-year module shipments will surpass 70 to 75 GW guidance.
With the positive fundamentals, JKS is one of those hidden-gem renewable energy stocks to buy.
SolarEdge Technologies (SEDG)
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SolarEdge Technologies (NASDAQ:SEDG) offers solutions for harvesting and managing solar energy in photovoltaic (PV) systems. The company’s product lineup includes power optimizers, inverters, and a cloud-based monitoring platform. It also has substantial interests in various energy market segments such as storage, EV charging, and grid services.
SEDG could be a contrarian pick for investors who aren’t afraid of going against the herd. The company’s stock price is down 73.19% over the past year, but I also think there’s some hope on the horizon, and I also believe its shares could be undervalued and oversold.
The company reported a GAAP net loss of $61.2 million, marking a significant downturn from the GAAP net income figures of the prior quarter and the same quarter last year. But despite these losses, the company did generate $40.6 million from operating activities.
However, for next year, things are looking more positive. It expects revenues to range between $300 million and $350 million. Specifically, for the solar segment, revenues are forecasted to be between $275 million and $320 million, with a gross margin expected to be in the range of 7% to 10%.
Despite facing challenges for its top line, analysts this year expect its EPS to receive a substantial boost. It’s expected that its EPS will grow 135.15% to 3.88. And although it currently has a rating of “Hold,” there’s an implied upside of 64.79% for its stock price.
REX American Resources (REX)
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REX American Resources (NYSE:REX) operates as an ethanol and by-products producer, focusing on non-food grade corn oil, ethanol, and natural gas.
Like most other renewable energy stocks that are facing challenges as they scale their operations, REX reported a net income of $8.2 million in Q4 2023, with a total net income per share of $0.47. Also, the company’s effort to expand its ethanol production capacity from 150 million gallons to 175 million gallons at the One Earth Energy facility in Illinois is another tailwind.
Looking ahead, for Q1 2024, REX American Resources has outlined its financial outlook, with analysts estimating earnings per share (EPS) of $0.70.
Trading at just 15 times earnings and 0.9 times sales, REX could then be one of those undervalued renewable energy stocks to buy.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
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