|Bid||5.64 x 2200|
|Ask||5.61 x 800|
|Day's Range||5.50 - 5.98|
|52 Week Range||0.29 - 8.50|
|Beta (5Y Monthly)||1.69|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Are you an environmentally friendly and socially responsible investor? If so, there's an entire set of stocks to watch that specifically reflects that mindset. They're called "ESG stocks" and they're beginning to grow in popularity. These are shares of companies that advance environmental, social, and governance initiatives within their respective industries and organizations contributing to a better world. It doesn't matter if we're talking about penny stocks or blue-chip stocks, the ESG wave is building. Breaking Down ESG & Applying It To Small-Cap StocksAn environmentally aware company focuses on things like climate change, renewable energy, and decreasing carbon footprints. Social responsibility takes into consideration things like employee culture--pay equality, training, benefits, ethical behavior, and astute customer service are all part of it. When we talk about governance, these are companies focused on corporate governance, such as how executives are compensated, are they treated fairly, transparency, voting rights, and diversity are all things you could consider as part of these companies. These characteristics have been growing in popularity among the newest generation of investors, many of whom have entered the market via fast-growing brokers like Robinhood. And thanks to pandemic lockdowns, curiosity has driven a wave of interest in stocks. It has also pushed interest in things like penny stocks, for instance. If you look at some of the penny stock brokerage growth statistics for 2020, you'll see far and away, Robinhood has become a favorite. Among these Robinhood traders, many of the Top 100 list on the platform are building exposure to ESG initiatives. For instance, just this month, we saw a previous penny stock, Nio Inc. (NYSE: NIO) surge to new highs of over $54 a share. The company manufactures electric vehicles and to think it was one of the EV stocks under $5 at the start of the year doesn't seem real. But it is. Nio isn't the only ESG stock that has jumped and it won't be the last either.Small-Cap Stocks Surge With Growing Interest In ESG CompaniesYou can look for some of the big names when it comes to finding ESG stocks to buy right now. But for those who've seen how quickly the latest trend in EV penny stocks has accelerated, it seems fitting to look at some small-cap stocks in this ESG niche. While some are still penny stocks, others have graduated from the sub-$5 level. Gevo Inc. Gevo Inc. (NASDAQ: GEVO), for instance, is one of the stocks under $5 that has experienced a significant jump during the third and fourth quarters. The company develops renewable chemicals and biofuels. Gevo's entire model targets the reduction of greenhouse gas emissions with sustainable alternatives. The company uses low-carbon renewable resource-based carbohydrates as raw materials. While the company has made many strides to take advantage of this trend. In August, Gevo saw a positive reaction in the market after announcing that it has exceeded $1.5 billion in long-term contracts after signing a deal with Trafigura, one of the world's top commodity trading companies. The deal was set to support Trafigura's plan to build a market for low-carbon fuels further extending the positive environmental impact of Gevo's assets. The company also went further in October via a deal with TOTAL Cray Valley to develop a renewable isoamylene for TOTAL's polymer division. While shares are still down for the year, since the beginning of the third quarter, GEVO stock has nearly doubled. Fuel Tech Inc.Fuel Tech Inc. (NASDAQ: FTEK) is another one of the ESG penny stocks to watch on this list. The company provides solutions for controlling emissions, treating water in industrial applications, and optimizes combustion systems. While this is still a stock under $5, FTEK has made a significant move in the market since the start of the year. At one point this month, the penny stock reached a high of $2.58, which is considerable seeing as it was trading below $1 in January and even as low as $0.30 in March. What should investors be watching with Fuel Tech right now? While it's been a topsy-turvy year for most companies, Fuel Tech is looking ahead. The company recently reported its third quarter results and gave a business update discussing the outlook heading into 2021. While the company far exceeded estimates for both EPS and sales, it is important to pay attention to what management laid out for the coming months especially when we're talking about ESG stocks."Within our Air Pollution Control (APC) business segment, we remain intensely focused on providing custom-engineered solutions that fulfill the unique needs of each of our customers, and expect the final decisions to be made on multiple projects by the end of the year which, if Fuel Tech's bids are selected, would increase backlog for 2021 and beyond by $10 to $15 million," said President and CEO Vincent J. Arnone.Ocean Power TechnologiesHarnessing energy from ocean waves. That is what Ocean Power Technologies (NASDAQ: OPTT) looks to accomplish. The company has enjoyed one of its best years in the market in 2020. Since January 2, shares of OPTT stock have climbed from around 90 cents to highs of $3.72 and currently sit around $2. The company's subsea solutions have gained the most interest. Ocean Power's product, its PowerBuoy solutions platform, provides clean and reliable electric power. Furthermore, its Subsea Battery provides constant power for projects requiring electric power offshore. The company's recent contracts with the Adams Communications & Engineering Technology and receipt of a DeepStar project award have helped validate its systems.With Adams, Ocean Power's PB3 PowerBuoy solution will be evaluated in support of the U.S. Navy's Naval Postgraduate School's Sea, Land, Air, Military Research Initiative. Furthermore, the DeepStar project award will see the company study the deployment and operational requirements of utilizing OPT's PB3 PowerBuoy to provide remotely controllable zero-carbon power for deepwater subsea oil production applications. Members of this DeepStar consortium include Chevron, Equinor, ExxonMobil, Occidental, Petrobras, Shell, and TOTAL among other energy names.FuelCell EnergyFuelCell Energy (NASDAQ: FCEL) is one of the ESG stocks recently graduating from penny stock levels in November. It's also one of the top-performing fuel cell stocks. Since the start of 2020, FCEL stock has climbed from around $2 to highs this month of over $8.It's also been compared to other companies within the sector, like previous penny stock Plug Power (NASDAQ: PLUG). In the case of FuelCell, the ESG play on this stock stems from the company's business model. FuelCell handles all aspects of fuel-cell production, sales, installation, etc. The company recently secured an $8 million contract with the US Department of Energy to support the design and manufacture of a SureSource electrolysis platform. This platform will be integrated into and utilized for nuclear power plant waste heat for reaching efficiencies of up to 100%. This funding is a major step for the company and further validation of its technology. This month, hydrogen and fuel cell stocks have been running strong. A potential Biden presidency and general sector strength have helped drive momentum across the market. For FuelCell, the important thing to pay attention to is, similar to EV stocks, is the hype behind the move. FCEL stock has made a consistent move early in the year but during the last week, the penny stock went parabolic. So, the biggest question is whether or not FCEL can actually sustain trading levels above the $5 mark or not, in the short term.VivoPower InternationalVivoPower International (NASDAQ: VVPR) is another one of the former ESG penny stocks to skyrocket this year. This is a solar power and battery technology company, so the obvious focus on electric vehicle stocks has wrapped VVPR into the mix. At the beginning of the fourth quarter, the company acquired a controlling interest in Tembo 4x4 e-LV B.V. for $4.7 million. Tembo provides battery-electric and off-road vehicle solutions. This helped trigger the recent momentum that VVPR stock has seen. Shares even moved as high as $24.33. Similar to many small-cap stocks, that parabolic move didn't hold and, after announcing a $28.8 million financing, VVPR shares fell hard. It would appear that with a resurgence in EV excitement, the former penny stock is trading higher once again.For those looking at this as one of the ESG stocks to watch right now, keep in mind that Vivo has more than just the EV play. Earlier this year the company's subsidiary was also awarded a contract to finish all electrical works for the 39MWdc Molong Solar Farm in Australia. The project will generate enough energy to power nearly 11,000 homes avoiding more than 53,000 tons of CO2 per year. Sunworks Inc.Compared to Vivo, Sunworks Inc. (NASDAQ: SUNW) is more of a pure-play on solar power and with leading companies like JinkoSolar soaring this year, attention is on solar energy stocks as well. While JKS shares saw a near 300% move since the first trading day of the year, Sunworks rallied more than 570% at one point this year. In November, SUNW is still up more than 375% as the push for renewable energy investing has taken the market's attention in the second half of the year. Much of the anticipation early on had focused on the pending merger with The Peck Company. The tie up would effectively form one of the largest solar companies in the market. That deal was recently terminated due to not receiving enough support from Sunworks' shareholders. This ended up becoming a positive catalyst for the company in light of the $10 million in solar project wins in Q3 as well as the two new contracts Sunworks signed in the first week of October. For those looking at ESG stocks right now, solar power has become one of the top energy niches to consider. Neither the author of this post nor Pennystocks.com have a position or financial relationship with any of the stocks mentioned above. See more from Benzinga * Click here for options trades from Benzinga * Here's What 0 Invested In 7 Electric Vehicle Penny Stocks In March Is Worth Right Now(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Solar stocks have been all the rage on Wall Street in 2020, with the Invesco Solar ETF (NYSEARCA:TAN) rallying 130% year-to-date to its highest levels since 2011. In this raging bull market, few solar stocks have shined as bright as relatively obscure Sunworks (NASDAQ:SUNW), as Sunworks stock has soared 130% in the past three months alone. Of course, such huge rallies beg two enormous questions: Is the solar stocks breakout in 2020 the real deal? If yes, is SUNW stock a good way to play the solar energy megatrend? In short, yes, solar energy is on the cusp of taking over the world’s energy production, and as a result, the 2020 breakout in solar stocks is simply the beginning of a much bigger, much longer uptrend in these stocks over the next 10-plus years.InvestorPlace - Stock Market News, Stock Advice & Trading Tips And, yes, SUNW stock does offer a compelling high-risk, high-reward play on the solar energy megatrend, mostly because the stock sits at the intersection of high-quality, misunderstood and undervalued. 7 Autonomous Vehicle Stocks to Buy As Transpiration Enters a New Era Net net, I’m speculatively bullish on the prospects of the big breakout in SUNW stock over the past three months, persisting over the next three years — a stretch in which Sunworks stock could rise more than 7X. Here’s a deeper look. Solar Is the Future The year-to-date surge in solar stocks is not a head-fake. The stars have finally aligned for the solar energy megatrend to come to life. That is, in 2020, four major legislative, consumer and economic megatrends have converged to promote rapid and widespread uptake of solar energy solutions, including: Government support (almost every country in the world has a “100% clean energy” target for 2030, 2040, or 2050) Falling costs (solar energy costs have dropped 70% over the past 10 years, and solar is now the cheapest electricity source in history) Improving technology (26% of solar systems will be paired with energy storage capability by 2025, versus just 4% in 2019) Rising consumer demand (46% of U.S. homeowners are seriously thinking about adding solar panels to their homes, up from 40% in 2016) Over the next decade, these four megatrends will continue to converge, ultimately resulting in solar power becoming globally ubiquitous, with solar powering everything from your home to your office to your electric car. Solar energy will be at the root of everything we do. Of course, that means there is huge upside in the solar industry over the next 10+ years. In 2019, solar energy production accounted for just 6.8% of U.S. electricity generation. As that share moves to 10%, 20%, and 30%-plus over the next one to two decades, the entire solar energy industry will grow by several hundred percent. Solar stocks will keep surging. This rising tide will lift all boats, including SUNW stock. Sunworks Stock Has Struggled Sunworks is basically a small, $45 million construction company in California that has decided to specialize in residential and commercial solar panel installation, with a focus on mid-scale commercial projects. At first glance, this company needs a lot of work. Despite strong solar demand in the U.S. over the past few years, sales at the company have been steadily dropping ever since 2016, while profit margins have eroded, losses have piled up, and the balance sheet has dwindled. To be frank, Sunworks has been an eyesore in an otherwise burgeoning industry. That’s why SUNW stock dropped from $25 in early 2016, to just 29 cents earlier this year. The Company Is in Rebound Mode But, four big things have changed over the past year, and when tied together, these four changes paint a clear picture of a solar panel installer in the first inning of a big rebound. One, solar costs have dropped below traditional electricity costs for the first time ever, creating clear and robust economic incentives for consumers and businesses to install solar panels and become energy independent. These economic incentives lay the groundwork for enormous growth in new solar energy installation capacity, which had mostly flatlined. Indeed, U.S. new solar energy installation capacity is expected to rise 37% in 2020, versus a 12% drop from 2016 to 2019. The emergence of compelling economic incentives ensures that 2020’s 35%-plus growth rate turns into the new norm for several years. Two, California — where Sunworks does most of its business — has mandated that all new residential construction built post-2020 be constructed with solar panels, thereby essentially guaranteeing that Sunworks’ core market sees robust growth between now and 2025. Three, Sunworks has started to win a lot of new business coming out of the Covid-19 pandemic. In the third quarter of 2020, Sunworks signed $10 million in new commercial and agriculture projects — a big number for a $45 million company — with 19 existing and new customers. Of importance, $3.6 million of those contracts were booked in the last week of September, and the company signed two more large projects in the first week of October, implying that the company’s new business momentum is only accelerating. Fourth, Sunworks got an all-stock acquisition offer from The Peck Company (NASDAQ:PECK), a solar installer that is basically Sunworks’ twin in the Northeast. That’s big because industry consolidation almost always produces more favorable economics, by reducing the number of competitors in the market and removing overlapping jobs. So, a Sunworks-Peck combined company would generate enormous cost-saving synergies and operate at significantly higher profit margins than a standalone Sunworks company, implying more value in the long run. Big picture: it looks like Sunworks — powered by booming solar demand, a revitalized California market, new deals and a potential acquisition — is on the cusp of a huge turnaround. If this turnaround persists, SUNW stock has big upside potential. Compelling Upside Potential for Sunworks Stock The math for SUNW stock to soar over the next few years isn’t that hard to follow. The U.S. energy market has been adding roughly 10,000 MWdc of solar energy install capacity per year over the past few years. Against that backdrop, Sunworks has been doing about $60 million in annual revenue. Current estimates call for 2020 install capacity to rise to nearly 20,000 MWdc. There are enough macro drivers in-place here to sustain 20,000 MWdc solar energy install capacity per year throughout the 2020s. That’s double the historical rate. Assuming Sunworks holds its own in this burgeoning market, then the company’s revenues could also double, to around $120 million per year. Gross margins hover around 25%. Assuming the opex dollar base stays relatively flat around $15 million, then the company could be looking at $15 million in profits within the next few years. Based on a 20X earnings multiple, that implies a potential future valuation for Sunworks of $300 million. And that’s without the acquisition, which would inevitably boost profit margins and the company’s potential long-term valuation. Needless to say, then, SUNW stock appears to have significant long-term upside potential. Bottom Line on Sunworks Stock SUNW stock is a speculative high-risk, high-reward play on the solar energy megatrend. If you’re looking for something more stable and less risky, consider one of the larger solar stocks in the market. But, if you’re a risk-seeking investor with an appetite for big returns, then SUNW stock is an attractive pick in the booming solar industry. On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article. The New Daily 10X Stock Report: 98.7% Accuracy – Gains Up to 466.78%. InvestorPlace’s brand-new and highly controversial newsletter… is rocking the industry… delivering one breakthrough stock recommendation each and every trading day… delivered straight to your inbox. 98.7% Accuracy to Date – Gains Up to 466.78%. Now for a limited time… you can get in for just $19. Click here to find out how. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company Daily Picks: Stocks to Buy Ahead of the Election The post Sunworks Stock Is a High-Risk, High-Reward Play on the Solar Boom appeared first on InvestorPlace.
Though novel coronavirus-related headlines have dominated 2020, one of the side issues that has taken significant prominence is sustainability. In particular, solar energy, which was already a hot topic, got even hotter. And that’s good news for companies like Sunworks (NASDAQ:SUNW) — and specifically, SUNW stock. Source: Shutterstock For instance, in 2015, the value of the solar power market worldwide was $86 billion. By 2022, experts predict it will hit $422 billion. That’s a staggering figure, and one that bolsters the fundamental case of Sunworks. However, it’s possible that the actual revenue generated will be greater than what was forecasted before the pandemic. As you know, 2020 has been bizarre on multiple levels. For California-based Sunworks, its home state suffered rolling blackouts earlier this summer. According to Calmatters.org, the blackouts were the first non-wildfire related ones in 19 years.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Furthermore, the website noted that two main factors contributed to the sudden loss of power: “record-breaking heat throughout the West and fewer available resources because of permanent shutdown of fossil-fuel power plants.” Also, California is heavily reliant on imported power, with a third coming from out of state. Unfortunately, this put California’s electrical grid at a deficit at the worst possible time. Nevertheless, if you’re going to look at the bright side of things, the rolling blackouts represented free market for green energy solutions. On paper, this helps SUNW stock because it’s bringing people who never considered solar power to start thinking about it. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes To be clear, solar panels that are on the grid won’t magically act as backup generators. For that, you’ll need an energy storage solution or have panels that are off the grid. Nevertheless, the interest in solar energy is what matters most to SUNW stock and that’s clearly high — perhaps at an all-time record. A Biden Win Could Make SUNW Stock Great Again Although there’s no greater incentive for alternative power solutions than to go for hours, let alone days without power, the vitriolic political struggle could nevertheless have substantial implications for SUNW stock. With former Vice President Joe Biden appealing to the environmental and sustainability crowd, the solar energy industry should get a boost under new White House ownership. Now, I don’t want to get into a feasibility discussion of the so-called Biden Plan for the environment. Still, if I may, I doubt that the U.S. will achieve a 100% clean energy economy no later than 2050. After all, there are certain advantages of using fossil fuels — most notably energy resource diversification. But the takeaway is that investments like SUNW stock will receive more attention, which is a net positive. But a more significant development is that Biden and running mate Senator Kamala Harris have pledged to decriminalize marijuana, as well as “automatically expunge all marijuana-use convictions and end incarceration for drug use alone.” That’s a bold move considering that Biden has historically been opposed to legalizing marijuana. To clarify, decriminalization does not mean legalization, which is an issue that the pair disagree on. However, given the economic impact of the new normal, I’ve got to imagine that Biden will at least entertain the idea. In early 2019, the cannabis industry represented the fastest-growing market, which obviously bodes well for job growth. And what are we seeing this year? It’s not just the number of people unemployed but rather the startling acceleration of permanent job losers. One of the surefire ways for team Biden to garner immediate support is to legalize weed and nurture this market. If that happens, this could theoretically boost SUNW stock and its underlying agricultural solar market. While the mechanics regarding solar for cannabis production is complicated due to the myriad ways to grow weed, generally, solar can help cut overhead costs. Furthermore, as solar energy technology improves, the cost-cutting can extend to other areas of marijuana production. Not Quite a Comfortable Buy Yet Of course, most of the above assumes a Biden victory. However, if lightning strikes twice and President Donald Trump wins his second term, the situation becomes tricky. And that may help to explain the recent wildness in SUNW stock. You can never count “The Donald” out, that is for sure. Also, while the outside narrative for SUNW stock appears bullish, the underlying financials are lacking. For instance, its Altman Z-Score registers as -2, which signifies a deeply distressed organization. As well, Gurufocus.com warns its readers that Sunworks is significantly overvalued. Because SUNW seems to be looking for some political clarity, I’d prefer waiting until after the election is over before considering shares. Yes, shares have strong tailwinds, but this is also a contested market. As well, the positive fundamentals will take some time to develop. On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company The post A Biden Victory Could Help Sunworks Stock Over the Long Run appeared first on InvestorPlace.