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Two Strong-Buy Renewable Energy Stocks to Consider Now

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With the harmful effects of pollution and the advent of global climate change finally reaching everyday conversations throughout society, investors are finally starting to see the traditional energy sector respond. Serious money is being poured into clean-energy research, and even oil behemoths like BP (BP - Free Report) and Exxon Mobil (XOM - Free Report) have taken up the task of advocating for new policies like carbon taxes.

As old-school energy giants begin to gain exposure to clean and renewable alternatives, investors looking to profit from the next generation of energy might to be able to find potential in the sector’s familiar stocks.

But a modern diversified portfolio might also have room for more-direct exposure to renewable energy sources. And while these types of stocks tend to be considered buy-and-hold investments, prudent investors might also being looking for companies that are poised to outperform the market over the coming months.

With that said, the best way to find the strongest renewable energy stocks to buy right now is to search for those currently sporting strong Zacks Ranks. This proven stock-picking system places an emphasis on earnings estimates and estimate revisions to find stocks that are on track to move higher over the next one-to-three months.

Check out these two strong renewable energy stocks today!

Renewable Energy Group, Inc.

Renewable Energy Group is a leading provider of cleaner, lower carbon intensity products and services.  The company produces and sells biofuels and renewable chemicals in the U.S., primarily biomass-based diesel from a range of feedstocks—including inedible corn oil, used cooking oil, soybean oil, canola oil, and inedible animal fat.

REGI is currently sporting a Zacks Rank #1 (Strong Buy). After finishing fiscal 2017 in the red, analysts are expecting the company’s adjusted full-year earnings to improve by over 225% in 2018. The Zacks Consensus Estimate for REGI’s fiscal 2018 EPS has also moved 13 cents higher over the past week, signaling that sentiment is starting to improve significantly.

On top of this impressive estimate revision activity, REGI is also displaying some attractive valuation metrics. The stock is currently trading at just 5.4x forward earnings, and its PEG ratio of 0.4 suggests investors are getting a great price for its expected EPS expansion. REGI is currently the highest-rated stock in our “Biofuels” industry.

SolarEdge Technologies, Inc. (SEDG - Free Report)

SolarEdge provides inverter solutions to the solar energy industry. The company’s system offers power optimizers, inverters, and a cloud-based monitoring platform. It serves residential solar installations to commercial and small utility-scale solar installations.

SEDG has been skyrocketing since it crushed Street expectations a few weeks ago. In its latest quarter, SolarEdge saw adjusted earnings of $0.85 per share, surpassing the Zacks Consensus Estimate of $0.63 by nearly 35%. Since then, analysts have been scrambling to revise their earnings estimates, and we have seen a tidal wave of positive revisions for SEDG.

SEDG is now sporting a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for the company’s fiscal 2018 EPS has gained a staggering 72 cents over the past 30 days. Meanwhile, the stock is trading at a respectable 18.5x forward earnings.

Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

Breaking News: Cryptocurrencies Now Bigger than Visa

The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.

Zacks’ has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.

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BP p.l.c. (BP) - free report >>

Exxon Mobil Corporation (XOM) - free report >>

SolarEdge Technologies, Inc. (SEDG) - free report >>