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3 Stocks to Gain on Biden's Promised Focus on Clean Energy
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With U.S. president-elect Joe Biden set to enter the White House next month, the future of the clean energy industry seems to be bright. Per Biden’s plan for a Clean Energy Revolution and Environmental Justice, the United States will rejoin the Paris Climate Agreement on Jan 20, nullifying his predecessor’s decision of removing the country from participating in this landmark global pact to reduce greenhouse gas (GHG) emissions.
Considering the different aspects of Biden’s clean energy plan for the United States, including the ambitious investment target of $2 trillion in clean energy infrastructure over the next four years, major clean energy advocacy agencies applauded his victory whole-heartedly. Let’s delve deeper into Biden’s clean energy plan to understand its impact on clean energy stocks.
Biden’s Clean Energy Vision
Since emerging as the president-elect, Biden has been very vocal about his aim to adopt more expansive clean energy policies. Notably, Biden’s climate plan targets producing 100% electricity from clean energy by 2035.
Biden is also set to develop rigorous new fuel economy standards to ensure that 100% of new light- and medium-duty vehicles will be zero emissions. To this end, Biden will work with U.S. governors and mayors to support the deployment of more than 500,000 new public charging outlets by the end of 2030. Moreover, Biden aims to restore the full electric vehicle tax credit to incentivize the purchase of these vehicles. Since the transportation sector is a major source of GHG emissions, such initiatives will surely boost the prospects of the clean energy industry.
Promoting clean energy also means mitigating existing use of fossil fuel. Biden is expected to demand a worldwide ban on fossil fuel subsidies. To this end, Biden aims to build on the achievements of the Obama-Biden administration to get G20 countries to phase out inefficient fossil fuel subsidies.
Further, Biden plans to set a target of reducing the carbon footprint of the U.S. building stock to 50% by 2035, creating incentives for deep retrofits. He will also ensure that the agricultural sector is the first in the world to achieve net-zero emissions.
The aforementioned discussion gives only a brief overview of Biden’s multi-faceted clean energy strategy. The full blueprint of his plan indicates sizable benefits for the U.S. clean energy industry once it is implemented.
Stocks to Gain
Considering the booming growth prospect of the U.S. clean energy industry under Joe Biden, we have handpicked three clean energy stocks that possess a favorable Zacks Rank, historical earnings surprise trend and optimistic outlook. These stocks are poised to gain in the days ahead and could prove to be solid additions to one’s portfolio.
SunPower Corp. (SPWR - Free Report) : This solar panel producer has an average four-quarter earnings surprise of 49.23%. The company currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for 2021 earnings, pegged at 43 cents per share, indicates annual growth of 312.6%.
Ameresco Inc. (AMRC - Free Report) : This energy efficiency solutions provider has an average four- quarter earnings surprise of 68.56%. The company currently carries a Zacks Rank #2. The Zacks Consensus Estimate for 2021 earnings, pegged at 43 cents per share, indicates annual growth of 18.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Covanta Holding : This energy-from-waste and industrial waste management services provider has an average four-quarter earnings surprise of 75.05%. The company currently carries a Zacks Rank #2. The Zacks Consensus Estimate, pegged at loss of 3 cents per share for 2021, implies annual improvement of 93%.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
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3 Stocks to Gain on Biden's Promised Focus on Clean Energy
With U.S. president-elect Joe Biden set to enter the White House next month, the future of the clean energy industry seems to be bright. Per Biden’s plan for a Clean Energy Revolution and Environmental Justice, the United States will rejoin the Paris Climate Agreement on Jan 20, nullifying his predecessor’s decision of removing the country from participating in this landmark global pact to reduce greenhouse gas (GHG) emissions.
Considering the different aspects of Biden’s clean energy plan for the United States, including the ambitious investment target of $2 trillion in clean energy infrastructure over the next four years, major clean energy advocacy agencies applauded his victory whole-heartedly. Let’s delve deeper into Biden’s clean energy plan to understand its impact on clean energy stocks.
Biden’s Clean Energy Vision
Since emerging as the president-elect, Biden has been very vocal about his aim to adopt more expansive clean energy policies. Notably, Biden’s climate plan targets producing 100% electricity from clean energy by 2035.
Biden is also set to develop rigorous new fuel economy standards to ensure that 100% of new light- and medium-duty vehicles will be zero emissions. To this end, Biden will work with U.S. governors and mayors to support the deployment of more than 500,000 new public charging outlets by the end of 2030. Moreover, Biden aims to restore the full electric vehicle tax credit to incentivize the purchase of these vehicles. Since the transportation sector is a major source of GHG emissions, such initiatives will surely boost the prospects of the clean energy industry.
Promoting clean energy also means mitigating existing use of fossil fuel. Biden is expected to demand a worldwide ban on fossil fuel subsidies. To this end, Biden aims to build on the achievements of the Obama-Biden administration to get G20 countries to phase out inefficient fossil fuel subsidies.
Further, Biden plans to set a target of reducing the carbon footprint of the U.S. building stock to 50% by 2035, creating incentives for deep retrofits. He will also ensure that the agricultural sector is the first in the world to achieve net-zero emissions.
The aforementioned discussion gives only a brief overview of Biden’s multi-faceted clean energy strategy. The full blueprint of his plan indicates sizable benefits for the U.S. clean energy industry once it is implemented.
Stocks to Gain
Considering the booming growth prospect of the U.S. clean energy industry under Joe Biden, we have handpicked three clean energy stocks that possess a favorable Zacks Rank, historical earnings surprise trend and optimistic outlook. These stocks are poised to gain in the days ahead and could prove to be solid additions to one’s portfolio.
SunPower Corp. (SPWR - Free Report) : This solar panel producer has an average four-quarter earnings surprise of 49.23%. The company currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for 2021 earnings, pegged at 43 cents per share, indicates annual growth of 312.6%.
Ameresco Inc. (AMRC - Free Report) : This energy efficiency solutions provider has an average four- quarter earnings surprise of 68.56%. The company currently carries a Zacks Rank #2. The Zacks Consensus Estimate for 2021 earnings, pegged at 43 cents per share, indicates annual growth of 18.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Covanta Holding : This energy-from-waste and industrial waste management services provider has an average four-quarter earnings surprise of 75.05%. The company currently carries a Zacks Rank #2. The Zacks Consensus Estimate, pegged at loss of 3 cents per share for 2021, implies annual improvement of 93%.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Start Your Access to the New Zacks Top 10 Stocks >>