The growing emphasis on clean energy has increased the scope of renewable/clean energy stocks.
Every single day the world is moving towards clean energy and the corporate world is owning this task to make this planet better. The new U.S. administration promises to put the country on track to zero-emission by 2050.
Most governments are taking serious measures to promote the use of renewable energy. The basic motto is to overcome the disastrous energy crisis that can be vulnerable for the planet earth.
In that spotlight, clean energy stocks stand a fair chance to become a new leader in the stock market going forward. The devoted innovators in this space can enjoy strong growth in the next few years.
With the government putting more stake in renewable energy, here are the three clean energy stocks to watch for the long-term run.
Renewable Energy Group, (REGI)
Renewable Energy Group (REGI) develops and supplies renewable chemicals, biofuels, and related products. The company has a market cap of $2.88 billion, as we write this. REGI’s business is based in the U.S., which is the biggest clean energy market at the moment.
During pre-quarantine days, REGI stock was trading around $20 per share. When the pandemic started to pick up momentum, the stock has been rallying since then. Renewable Energy Group’s shares have surged over 250.9% since March 11, 2020, and currently, the stock trades at its all-time high of $73.27.
Most of the Wall Street analyst rates REGI stock as a Buy. Currently, 8 of the analysts rate the stock with more upside potential and are bullish on Renewable Energy Group stock.
With the recent 3.68% upsurge in REGI shares, there’s more to come in long run.
Plug Power (PLUG)
Plug Power (PLUG) has been in news recently. The company that is a leading provider of hydrogen engines and produces fuel cell systems used in e-trucks and other equipment’s, is one to watch in 2021.
The recent collaborations of Plug Power with industry leaders have diversified its portfolio. On Nov 30., the company partnered with hydrogen-powered heavy vehicle maker Gaussin. Under this deal, the company will produce a new suite of vehicles for sale in 2021.
And now, the company has announced that it has collaborated with Walmart. Plug Power will deliver its hydrogen and fuel cell solutions to the e-commerce giant.
The expansion of Plug’s hydrogen power will make it the market leader. Currently, there’s a high demand for hydrogen power across Europe and as the world moves toward a carbon emission-free ecosystem, Plug Power will record more growth.
McKinsey & Co. projects the global hydrogen economy to grow to a whopping $2.5 trillion by 2050.
Moreover, the company has also raised the largest capital in the firm’s history—almost $1 billion of capital. This will help Plug Power to develop and accelerate its work on its green hydrogen strategy.
The host of Mad Money on CNBC, Jim Cramer is weighing on Plug Power due to its capability in hydrogen. He believes that hydrogen power is the next big thing in the clean energy sector.
According to Schmidt, Plug Power has recorded a constant growth of 30% to 40% over the past few years. The long-term momentum is bullish and with all these developments, Plug Power is a favorite stock for investment.
Enphase Energy (ENPH)
Enphase Energy (ENPH) is a prominent solar energy stock that has seen a significant change over the last few years. Enphase has turned the tables around and has continued to surge as we move past the COVID-19 era.
After being delisted from the Nasdaq exchange in 2017, the company has seen growth after overcoming that phase. Since then, the finances of the company have improved. With the evolving solar market in the U.S., Enphase has recorded growing profitability. The company has over 16% market share in the U.S.
The company has reported a strong improvement in revenues, especially in the pre-COVID-19. But, the most promising achievement of Enphase has been its improving gross margin.
The short-term and long-term momentum favors the stock to continue bullish momentum.
Right now, 11 Wall Street analysts rate Enphase Energy (ENPH) stock as a buy.