With many politicians calling for companies to reduce their environmental impact and the gradual shift toward more environmentally friendly sources of energy, the renewable energy industry is one that could profit and grow from this transition over the coming years. With that being said, here are a few "green" companies that are showing signs of strength going forward.
Enphase Energy Inc. ENPH
Zacks Rank #2 (Buy)
Based in Fremont, CA., Enphase Energy primarily produces solar microinverters for both homeowner and commercial purposes. Analysts are optimistic about Enphase’s future. The company’s earnings estimates have only received upward revisions for the current quarter and year along with next quarter and next year. Zacks Consensus Estimates call for 52% top line growth, which will fuel the expected earnings growth of 420% for fiscal year 2019. This growth is projected to bring fiscal year 2019’s EPS to $0.52 compared to just $0.10 in 2018.
SunPower Corp. SPWR
Zacks Rank #3 (Hold)
SunPower Corp is a San Jose, CA. based solar panel designer and producer. SunPower is a Zacks Rank #3 (Hold) at the moment, but still has a positive outlook for the future. The current quarter might be hard for the company, with Zacks Consensus Estimates calling for adjusted earnings to fall -300%. But earnings are expected to bounce back around 103% following this negative growth the following quarter. Looking further ahead, the numbers are much more positive with expectations of 48% earnings growth for fiscal year 2019 and a further 137% earnings growth in fiscal 2020 along with top line growth both years.
Bloom Energy Corp. BE
Zacks Rank #2 (Buy)
Also based in San Jose, Bloom Energy develops, produces, and installs Bloom Energy Servers. Bloom Energy Servers are power generators that use fuels from biological sources such as methane, a gas naturally emitted by waste. Bloom was recently upgraded to a Zacks Rank #2 (Buy). Zacks Consensus Estimates are calling for 21% revenue growth for fiscal year 2019 and 2020 along with expected earnings growth of 57% and 250% for 2019 and 2020. This extraordinary top and bottom line growth could help to fuel the stock price in the coming years, potentially making it a good addition to a portfolio.
JinkoSolar Holding Company JKS
Zacks Rank #1 (Strong Buy)
JinkoSolar, based in Shanghai, is the world’s largest solar panel manufacturer. JinkoSolar was recently upgraded to a Zacks Rank #1 (Strong Buy) and earns an "A" grade for both Value and Growth in our Zacks Style Score system. Our current Zacks Consensus Estimates call for 81% earnings expansion for fiscal year 2019 coupled with 18% top line growth. Earnings are also expected to surge an additional 40% above our current-year estimate in fiscal 2020. JinkoSolar’s P/E of 7.72 is well below industry average of 34.7 making it a possible good option for investors in terms of both value and growth.
Casella Waste Systems Inc. CWST
Zacks Rank #2 (Buy)
Vermont-based Casella Waste Systems is a waste management company that recycles waste and uses it as an energy source. By putting the natural emissions from landfills through power generation plants, Casella is able to produce enough power for approximately 25,000 homes while also reducing greenhouse gas emissions. Casella was recently upgraded to a Zacks Rank #2 (Buy). Analysts have given Casella 3 upward revisions for current year earnings compared to just 1 downward revision in the past 60 days. The company’s EPS is projected to grow from $0.61 to $0.80 for fiscal 2019 and then continue to grow to $0.99 in fiscal 2020, based on our current Zacks Consensus Estimates. And we can see that CWST stock has soared in recent years.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Casella Waste Systems, Inc. (CWST) : Free Stock Analysis Report
SunPower Corporation (SPWR) : Free Stock Analysis Report
JinkoSolar Holding Company Limited (JKS) : Free Stock Analysis Report
Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report
Bloom Energy Corporation (BE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research