Beyond the Horizon: 3 Best Stocks to Buy for a Green Energy Revolution
The global shift towards sustainability and clean energy technologies has sparked a new green energy revolution. Over the next few decades, the global energy mix will be flipped on its head. Government’s around the world are working together to cut global GHG emissions and transition towards more green energy sources, and these green energy stocks will be the first to benefit.
The U.S. is making bold steps to make this happen with the Inflation Reduction Act signed into law in August 2022. This includes bold plans to reduce GHG emissions by roughly 40% by 2030. It also entails a $370 billion investment into green energy infrastructure and environmental justice initiatives. With the global economy’s ambition to reach net zero emissions by 2050, green energy stocks hold a promising future.
Now, let’s discover the three best green energy stocks to buy for a green energy revolution!
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NextEra Energy (NEE)
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NextEra Energy (NYSE:NEE) stands as the top contender for the best stocks to buy for a green energy revolution. It’s one of the largest energy companies in the United States, with a robust green energy portfolio.
NextEra owns Florida Power & Light, the largest power utility company in Florida. More recently, the company expanded its renewable energy portfolio backlog adding 3,245 megawatts of solar and energy storage capacity. NextEra plans to add an additional 20,000 megawatts of solar capacity in the U.S. by 2032. This is great news as the prospects of interest rate cuts in 2024 could be the catalyst to spur construction activity and expansion.
The company seems like a bargain here, given its robust green energy and utility portfolio. NextEra is well diversified and its plans to invest significant CAPEX in new green energy projects are only just beginning. Furthermore, with a forward PE of 17, the stock appears to be relatively attractive. With plans to grow its dividend by 10% through 2024, makes NEE stock a great buy.
First Solar (FSLR)
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First Solar (NASDAQ:FSLR) is one of the best green energy stocks to buy in 2024. The company weathered the storm during the solar energy slump in 2023, and this year could be a huge transition year for the company.
First Solar is one of the market leaders in the manufacturing of photovoltaic (PV) solar panels. It’s been making an aggressive push in the solar energy market in the last year, even amidst the slowdown in construction activity and higher interest rates. Additionally, the company has committed $2.8 billion in CAPEX to new solar projects for an additional 7.9 GW of generating capacity. This included investment in its fifth manufacturing facility in the U.S., adding 3.5 GW of nameplate capacity.
Furthermore, First Solar is projecting significant gains in revenue and operating income in the 2023 fiscal year. The company guided more than 30% revenue growth with operating income in the $770 million – $870 million range. As the solar energy market continues to recover, First Solar should definitely be kept on your radar.
Linde (LIN)
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Linde (NASDAQ:LIN) is undoubtedly the sleeper green energy stock that investors should keep a close eye on in 2024. Headquartered in the United Kingdom, it’s the largest industrial gas company in the world by revenue.
Linde has a large market share in the hydrogen infrastructure market, which is becoming an increasing part of the green energy transition. Under President Biden’s Infrastructure Investment and Jobs Act, includes $9.5 billion dedicated to clean hydrogen. However, that is only a sliver as the Inflation Reduction Act provides additional policy support and incentives to green energy infrastructure.
This is good news for Linde, and the market opportunities in hydrogen are global. The company currently owns and operates the largest hydrogen distribution network in the world, with close to 280 hydrogen refueling stations and electrolysis plants. Linde expects FY23 adjusted EPS in the $14.00 – $14.10 range, reflecting approximately 15% YOY growth.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.
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