The cost of new renewable energy sources is an important factor in determining how quickly the world will move away from fossil fuels. Therefore, the more affordable the technology, the more it will be implemented.
Besides a recent spike in inflation, solar and wind power projects are becoming more affordable. Globally, new onshore solar and wind projects are about 40% cheaper than coal and natural gas-fired power plants, according to BloombergNEF’s Global Utility Scale Benchmark.
Due to climate change, governments and companies are beginning to prioritize new renewable generation, keeping demand high.
Moreover, due to the conflict in Ukraine, European governments urgently need to discover alternatives to Russian oil and gas.
Renewables have become even more attractive due to this struggle since oil and natural gas prices have soared.
This article will go over the six most incredible clean energy penny stocks to buy right now.
Meta Materials Inc.
Meta Materials Inc. is focused on smart photonics and smart materials (NASDAQ: MMAT). The company’s nano-composites are used in several industries, including aerospace, automotive and consumer electronics. Moreover, the solar industry relies heavily on these nanomaterials in the energy sector. Founded in 2007, Meta Materials is located in Canada. In 2021, the company made over $4 million in sales, an increase of $1.1 million from the previous year.
During the first quarter of 2022, Meta Materials Inc. (NASDAQ: MMAT) recorded revenue of $2.97 million, an increase of approximately 300% over the same period in 2017.
In Q1 2022, 5 hedge funds in Insider Monkey’s database had $1.1 million invested in Meta Materials Inc. (NASDAQ: MMAT), compared to 4 in the prior quarter with $7 million invested. With 543,800 shares worth more than $908,000, Atlanta-based GMT Capital is the largest shareholder of Meta Materials Inc. (NASDAQ: MMAT) among the hedge funds monitored by Insider Monkey.
Rene Sola (SOL)
In addition to this developer and operator of solar projects, Molchanov mentions another company that derives much of its revenue from Europe.
Much of the company’s mid-to-late-stage project development pipeline is in Europe, with the largest being in Poland. This nation was heavily dependent on Russian natural gas until the supply was cut off earlier this year.
It was proposed in May by the European Commission that by 2030, renewable energy would represent 45% of the total energy consumed by the European Union, that the EU’s photovoltaic solar energy capacity would be doubled and that the approval period for large renewable energy projects would be cut in half.
A recent company statement said that “in Europe, our largest market, the solar sector is enjoying more favorable regulatory support, which translates into increased market potential.”
ReneSola is expected to earn $100 million or more this year, up from $80 million last year.
Stem (STEM, $7.79) has fallen almost 59% this year. However, there’s still plenty to enjoy about one of the best green power stocks for the rest of 2022 and beyond.
The San Francisco-based startup runs a smart, connected energy storage network. Independent power producers and utility companies can benefit from the company’s services.
Stem CFO Bill Bush said the company is “focused on leveraging our current software tools and people to leverage new, high-margin revenue streams” during its earnings call. first trimester.
Stem CEO John Carrington said, “The success of our business is built on our distinctive software products,” on top of that. When discussing the company’s contracted annual recurring revenue in the first quarter, Carrington referred to $51.5 million in the first quarter, an increase of more than double from the fourth quarter of 2019.
Susquehanna Financial Group analyst Biju Perincheril said “12-month backlog, bookings and pipeline KPIs all remain strong as the business continues to face continued high demand” (positive , purchase equivalent).
Three analysts rate the STEM stock as a strong buy on Koyfin, three rate it as a buy and two place the stock at the “Hold” level. This is neither a “sell” nor a “strong sell”, according to market experts. Overall, Koyfin considers Stem a solid buy because of this.
Morningstar Energy and Utilities Analyst Travis Miller says utilities that generate electricity from solar panels have had a tough time due to a Commerce Department investigation into solar cells from four Southeast Asian countries.
For this reason, shares of NextEra Energy fell. As a result, utility stocks have lost about a quarter of a percentage point so far this year, while renewable energy stocks have lost 15%.
According to Miller’s assessment of the stock’s current price, it had long been overvalued.
As he puts it, “we believe the decline in NextEra shares presents a great entry opportunity.” It is a superior utility that deserves a higher price than its competitors.
According to Miller, the current hurdles are just one stop in a larger growth narrative, even though government policy can have a significant influence on renewable energy companies.
“Renewable energies continue to increase internationally and particularly in the United States,” he adds.
International green energy and green technology provider, Ameresco (AMRC, $45.57). AMRC was founded in 2000 in Framingham, Massachusetts, and is based there.
There are a few setbacks in the works at the moment for the company. Due to lithium battery shortages in the United States, a major Ameresco project for Southern California Edison (SCE) was delayed. It is hoped that part of the 535 megawatt plant will be operational by August.
B. Riley analyst Christopher Souther (Buy) isn’t too concerned about the potential hiatus. Investors should be encouraged by Ameresco’s assertion that delays to the SCE project will have no impact on the company’s full-year 2022 revenue or margin forecast. she is “confident in the continuation of the momentum of additional projects this year”, according to the analyst.
According to the company’s CEO, George Sakellaris, “AMRC continues to benefit from a huge and growing addressable market.”
All of this bodes well for AMRC’s financial results.
As for industrial stocks, only one Koyfin analyst thinks this is a strong buy; another eight think it’s a buy, two think it’s a hold and one thinks it’s a strong sell out of 12 respondents. An overall strong buy rating from Koyfin is sufficient.
Albemarle (ALB, $196.00) is a leading producer of lithium compounds in the electric vehicle revolution. Electric vehicles need lithium batteries, which is the most important component.
ALB, of course, reaped the rewards of this strategy. The Charlotte, North Carolina-based company, founded in 1887, saw its fiscal 2021 sales increase 6.4% from a year earlier. Additionally, the first quarter of 2022 saw a 36% increase in net sales over the prior year.
However, there are some challenges for the stock. First, the European Union (EU) announced on June 7 that it was considering designating lithium as a hazardous substance. According to Albemarle, the company’s German factory in Langelsheim would be forced to close if that were to happen. Considering that this facility now employs 600 people and generates an estimated annual revenue of $500 million, which represents approximately 7% of ALB’s current annual sales, this would significantly affect the company’s bottom line.
This decision should be made in the second half of 2022 or early 2023, which is a long way off. Indeed, according to Jefferies analyst Laurence Alexander, “Current trends imply that Albemarle’s ASP [average selling price] could potentially climb until 2023, especially if EU and Chinese subsidies for electric vehicles protect the company from a larger macroeconomic collapse” (Buy).
Three of 23 analysts polled by Koyfin give the materials company a strong buy rating, while 11 give it a buy rating. By comparison, six people have a pending ALB, two think it’s a sell, and one thinks it’s a strong sell. They add up to a buy recommendation for one of the best green power stocks today.