Every investor dreams of getting in on the next game-changing industry or company that can turn their investments into the Teslas of tomorrow. Few segments of the economy present these kinds of opportunities, and it is certainly difficult to pinpoint industries and stocks in real time that offer out of this world profit potential.
Fortunately, one booming area of the market with nearly endless upside is staring everyone in the face, as it helps fuel the entire global economy.
The next generation of energy or alternative energy is loaded with stocks that offer massive near and long-term growth. And trillions of dollars are already flowing into the expansion of non-fossil fuel energy in the U.S. and around the world through a combination of the richest nations, the largest companies, and innovative upstarts.
Blowing Away the Tech Titans
Multiple alternative energy stocks already crushed Tesla, Nvidia, and other growth giants over the last five years. One alternative energy standout, which isn’t a household name – yet – soared 4,200% during the past five years vs. Tesla’s 900%, and the Nasdaq’s 70%.
That same solar technology company expanded its revenue from $300 million in 2018 to $2.3 billion in 2022, with it projecting to pull in $3.3 billion this year and $4 billion in 2024. Another stock in a different alternative energy segment is expected to grow its sales from $700 million in 2022 to $2.1 billion in 2024. On top of that, its CEO projects the firm will reach a whopping $20 billion by 2030—and it happens to be trading for around $10 a share.
These projections are far from pipe dreams, with alternative energy sources already deeply embedded in the U.S. and around the world. And alternative energies now account for over 75% of total global energy investment.
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Profit from the Red-Hot Future of Energy – Today
Trillions in R&D, incentives, and investments are already pouring into solar... hydrogen fuel cells... next-gen nuclear... and other new alternative energy sources.
Clean energy is now a strategic priority for virtually every wealthy nation on earth. More importantly, some of these little-known companies could become the next trillion-dollar energy behemoths. Investors who get in now may be in line for potentially massive gains.
Don't miss Zacks top stocks in this space. Deadline for entry is Sunday, April 2.
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Rapid Expansion Isn’t Stopping
Renewable energy, especially solar and wind, is in the midst of a lightning-fast rise. Hydroelectric power was the only viable form of renewable energy until wind turbines popped up in the early 1990s, and even they remained largely insignificant until the mid-2000s. Solar, the latest bloomer of the current crop, didn’t make a noticeable dent until the mid-2010s.
But solar and wind hit the ground running to help renewable energy double its share of U.S. electricity generation during the last decade from around 10% to 20%.
Nuclear, solar, and other alternative energy sources made up 40% of the U.S. electricity mix last year vs. 20% for coal. Non-fossil fuels accounted for 20% of total U.S. primary energy consumption in 2022 to trounce coal’s 11% as they try to inch closer to natural gas. Ten years ago, coal accounted for over 20% of total U.S. consumption.
Crucially for investors, the U.S. Energy Information Administration recently projected that renewables will double their share of electricity generation once again by 2050. And it is not just the U.S. that’s in the middle of an energy revolution.
The International Renewable Energy Agency reported in late March that global renewable generation capacity (which doesn’t include nuclear) jumped by roughly 10% or 295 GW in 2022. The agency said that “wind and solar led to the highest annual increase in renewable generating capacity and the second highest growth on record in percentage terms."
Plus, renewables produced a whopping 83% of all the new global power capacity added last year. A similar report from the IEA projected that total renewable energy investment topped $1.4 trillion in 2022 alone. Various other reports expect annual global alternative energy investment to triple by 2030 to around $4 trillion.
Industries and sectors matter a great deal when it comes to stock market performance, with the proverbial rising or falling tide lifting or sinking many of the ships in the fleet. Companies in the wider alternative energy industry space are being supported by the who’s who of Wall Street and the wealthiest nations.
The likes of JPMorgan Chase and Amazon are investing billions today in new energy technology and infrastructure, with plans to deploy trillions in the coming decades as part of a global effort to redesign the energy landscape and reduce emissions. Some of this money is flowing directly to the groundbreaking startups fighting to become the energy titans of tomorrow.
The U.S. and other powerful governments around the world are spurring growth through tax incentives, direct spending, and other means. The energy-focused aspects of the Biden administration’s Inflation Reduction Act alone are helping boost domestic renewable energy manufacturing and supporting other industry catalysts.
Even oil and gas-rich nations such as the United Arab Emirates are investing hundreds of billions of dollars into alternative energy. Meanwhile, some ‘Big Oil’ companies are slowly attempting to transform into ‘Big Energy’ companies as they look ahead, not just to the end of this decade, but 25 and 50 years into the future, in order to get their piece of the ever-growing multi-trillion-dollar alternative energy pie.
Capitalize On This Rare Opportunity
Alternative energy stocks represent a once-in-a-generation investing opportunity. The transition from “old fashioned” fossil fuels to cleaner, renewable energy sources may be the biggest shift since cell phones surpassed landlines.
Imagine the wealth you could have built if you saw that shift coming and invested in the right companies early!
I encourage you to consider getting into the most promising alternative energy companies as soon as possible. With that in mind, I'm inviting you to look into the exclusive recommendations and commentary in our private Alternative Energy Innovators portfolio.
As Zacks Energy Strategist, I've honed in on a select number of stocks focused on solar, hydrogen fuel cells, next-gen nuclear, and more. Each of these stocks offers extreme profit potential for investors who get in early enough.
I’m also adding a brand-new pick to the portfolio on Monday morning, and you can be one of the first to know about it.
Only a limited number of Zacks members will ever see these recommendations, but you can access them today for just $1.
It costs almost nothing to follow our new portfolio – along with its live buys, sells, and commentary. You get 30 days for only $1, and there's not a cent of further obligation.
Remember, entry will be restricted so we're setting a deadline of midnight Sunday, April 2.
See Our Hottest Energy Stocks Now >>
Thanks and Good Investing,
Ben Rains is Zacks Energy Stock Strategist. He manages our newest portfolio, Alternative Energy Innovators.