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As society continues to change and adapt, alternative energy use will be more common with many energy companies already shifting their focus to renewable energy in place of oil, coal, and natural gas.
Investors will certainly want to consider companies that can benefit from the progression and here are two stocks that may be able to do so.
Worthy of consideration is Clearway Energy (CWEN - Free Report) which sports a Zacks Rank #1 (Strong Buy). Clearway along with its subsidiaries owns and operates a diverse portfolio of contracted renewable and conventional generation, along with thermal infrastructure assets in the United States.
Furthermore, Clearway’s asset portfolio includes more than 9,000 megawatts (MW) of wind, solar, thermal, and natural-gas-fired power generation facilities as well as distract energy systems.
Clearway's earnings estimate revisions are noticeably up over the last quarter. Fiscal 2023 earnings estimates have climbed 26% over the last 90 days with FY24 EPS estimates soaring 98%.
Image Source: Zacks Investment Research
This is a great sign as Clearway's FY23 earnings are now projected to climb to $1.95 per share from an adjusted loss of -$3.73 in 2022. Fiscal 2024 EPS is only expected to dip -8% at $1.78 per share after what would be a very stellar year.
Trading around $30 per share, Clearway stock is down -4% year to date to trail the S&P 500’s +7% but top the Other Alternative Energy Markets -8%. Plus, this year’s drop may be a long-term buying opportunity considering the rising earnings estimates and the fact that Clearway stock is still up +58% over the last three years to top the benchmark and its Zacks Subindustry’s -8%.
Sporting a Zacks Rank #2 (Buy), Pineapple Energy (PEGY - Free Report) stock is also standing out among alternative energy companies. Pineapple is focused on local and regional solar, storage, and energy services.
Pineapple's portfolio of brands include Hawaii Energy Connection, E-Gear, Sungevity, and Horizon Solar Power which provide homeowners and small businesses with end-to-end product offerings spanning solar, battery storage, and grid services.
Pineapple’s growth is intriguing at the moment with the company edging closer to profitability. Earnings are expected to rise to $.0.08 per share this year compared to an adjusted loss of -$0.96 a share in 2022. Even better, FY24 earnings are now projected to soar 337% to $0.35 per share.
Image Source: Zacks Investment Research
Plus, sales are forecasted to climb 174% in FY23 to $85.20 million compared to $31.10 million in 2022. Fiscal 2024 sales are expected to jump another 40% to $119.30 million.
Trading just over $1, shares of PEGY are down -36% YTD and strongly make the case for being oversold considering Pineapple’s top and bottom line growth. Furthermore, Pineapple’s 18.6X forward earnings is below the industry average of 26.8X and slightly beneath the S&P 500’s 19X.
Takeaway
Considering that a majority of alternative energy companies are still in the beginning stages of probability the rising earnings estimates are a great sign for Clearway and Pineapple Energy stock. This should lead to more near-term upside in their stocks as they look poised to turn a profit this year along with being viable investments for 2023 and beyond.
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Time to Buy These Alternative Energy Stocks?
As society continues to change and adapt, alternative energy use will be more common with many energy companies already shifting their focus to renewable energy in place of oil, coal, and natural gas.
Investors will certainly want to consider companies that can benefit from the progression and here are two stocks that may be able to do so.
Clearway Energy (CWEN - Free Report) )
Worthy of consideration is Clearway Energy (CWEN - Free Report) which sports a Zacks Rank #1 (Strong Buy). Clearway along with its subsidiaries owns and operates a diverse portfolio of contracted renewable and conventional generation, along with thermal infrastructure assets in the United States.
Furthermore, Clearway’s asset portfolio includes more than 9,000 megawatts (MW) of wind, solar, thermal, and natural-gas-fired power generation facilities as well as distract energy systems.
Clearway's earnings estimate revisions are noticeably up over the last quarter. Fiscal 2023 earnings estimates have climbed 26% over the last 90 days with FY24 EPS estimates soaring 98%.
Image Source: Zacks Investment Research
This is a great sign as Clearway's FY23 earnings are now projected to climb to $1.95 per share from an adjusted loss of -$3.73 in 2022. Fiscal 2024 EPS is only expected to dip -8% at $1.78 per share after what would be a very stellar year.
Trading around $30 per share, Clearway stock is down -4% year to date to trail the S&P 500’s +7% but top the Other Alternative Energy Markets -8%. Plus, this year’s drop may be a long-term buying opportunity considering the rising earnings estimates and the fact that Clearway stock is still up +58% over the last three years to top the benchmark and its Zacks Subindustry’s -8%.
Image Source: Zacks Investment Research
Pineapple Energy (PEGY - Free Report) )
Sporting a Zacks Rank #2 (Buy), Pineapple Energy (PEGY - Free Report) stock is also standing out among alternative energy companies. Pineapple is focused on local and regional solar, storage, and energy services.
Pineapple's portfolio of brands include Hawaii Energy Connection, E-Gear, Sungevity, and Horizon Solar Power which provide homeowners and small businesses with end-to-end product offerings spanning solar, battery storage, and grid services.
Pineapple’s growth is intriguing at the moment with the company edging closer to profitability. Earnings are expected to rise to $.0.08 per share this year compared to an adjusted loss of -$0.96 a share in 2022. Even better, FY24 earnings are now projected to soar 337% to $0.35 per share.
Image Source: Zacks Investment Research
Plus, sales are forecasted to climb 174% in FY23 to $85.20 million compared to $31.10 million in 2022. Fiscal 2024 sales are expected to jump another 40% to $119.30 million.
Trading just over $1, shares of PEGY are down -36% YTD and strongly make the case for being oversold considering Pineapple’s top and bottom line growth. Furthermore, Pineapple’s 18.6X forward earnings is below the industry average of 26.8X and slightly beneath the S&P 500’s 19X.
Takeaway
Considering that a majority of alternative energy companies are still in the beginning stages of probability the rising earnings estimates are a great sign for Clearway and Pineapple Energy stock. This should lead to more near-term upside in their stocks as they look poised to turn a profit this year along with being viable investments for 2023 and beyond.