For all good reasons, you should jump in renewable energy stocks to invest in the long run.
The 2020 year has shown a clear path to the investors that the future demands changes—specifically the mother nature. Over the past few decades, the evolution of technology and industrialization has destroyed the global environment.
Now, the companies are focusing on green and clean energy and to save the natural resources that are diminishing swiftly. In that premise, the world is turning to renewable energy. The speed at which Electric Vehicle is growing is an example of it.
Analysts believe that 2021 is going to be the year for renewable energy stocks, as they will revive following a downward period last year due to the economic crisis. Let’s have a look at the three top renewable energy stocks to invest in the long-term.
First Solar (FSLR)
First Solar (FSLR) is a leading manufacturer of solar panels and a provider of utility-scale PV power plants based in the US. One factor that makes First Solar stand out in the panel manufacturing sector is its strong balance sheet.
The company is about to release its Q4 2020 results on Feb. 25. Increasing demand for its Series 6 modules is expected to record high quarterly shipments, thus helping in revenue increase. The company has been recording capacity utilization of almost 100% for this product, especially around the global factories recently.
In that premise, the company reported an earnings surprise of 141.67% in Q3 2020. Whereas, in the preceding four quarters, First Solar has delivered a whopping 102.06%earnings surprise—on average. First Solar (FSLR) is one of the best to bet in renewable energy stocks.
American Electric Power (AEP)
American Electric Power (AEP) is a major investor-owned electric utility in the United States. The company has a presence in 11 states and provides electricity to approximately 5.5 million customers, making it one of the largest regulated utilities in the country.
The company is focused to make a difference to environmental, social, and corporate governance (ESG) values. For instance, AEP is looking forward to obtaining a reduction of 42% in its coal capacity by 2030 and add green energy segments. By the next decade, the company anticipates adding around 3.8 gigawatts of solar power to its power portfolio and 4.2 gigawatts of wind power.
For the current year, AEP expects to return around $2.96 per share to investors, which would reflect a 4.2% increase year-over-year. Looking at the firm’s long-term objective, AEP stands a fair chance as an investment option for the long run.
NextEra Energy (NEE)
NextEra Energy (NEE) is the world’s largest utility company. NEE supplies energy to almost 5.5 million customers in Florida across two different subsidiaries. Moreover, the company is emerging as the largest generator of wind and solar renewable power.
As we head forward, NextEra will be among the leading renewable energy firms. The company is working with the combination of its highly regulated Florida utility business and fast-growing renewables arm. For investors, this is a key aspect that offers an industry-leading renewable energy growth potential stock. While, it also pays a dividend with a yield of 2.06%, as we write this.
In the last year, in one of the quarterly reports, the CEO of NextEra Rebecca Kujawa said that producing “green” hydrogen presents a “potential significant opportunity for us.” So, NextEra Energy (NEE) can be another key stock for long-term investment.