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3 Clean Energy Stocks Set to Beat Q2 Earnings Estimates
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Thanks to the enormous energy transition that the entire world is going through amid climate change concerns, we expect modest second-quarter results for clean energy stocks. Solid installation activities, along with increased product shipment and easing supply-chain constraints, amid interest rate impact are likely to get reflected in the companies’ quarterly performance.
A handful of such clean energy companies, particularly those in the solar and alternative energy field, which are part of the broader Zacks Oil-Energy sector, like Bloom Energy (BE - Free Report) , Sunrun (RUN - Free Report) and SolarEdge Technologies (SEDG - Free Report) are likely to have beat on estimates in the ongoing reporting cycle.
Here’s What to Expect
Per the latest short-term Energy Outlook from the U.S. Energy Information Administration (EIA), published in June 2023, solar is a prominent clean energy source that has been the leading source of new generating capacity in the United States so far this year. Moreover, the U.S. electric power sector has rapidly expanded its solar generating capacity by adding 16 gigawatts (GW) of new capacity between June 2022 and June 2023. The industry has also added 8 GW of wind capacity over the past year.
With solar and wind energy constituting a major portion of clean energy expansion, the aforementioned capacity enhancement is expected to get reflected in the companies’ second-quarter results.
Notably, factors like the electric vehicle market boom, declining capital costs for solar panels, wind turbines and battery storage, as well as government subsidies such as those included in the Inflation Reduction Act, are likely to have contributed to clean energy stocks’ quarterly performance.
Also, growing hydropower generation has been driving earnings and revenues of clean energy stocks. As stated by EIA in a May 2023 report, more favorable hydrologic conditions are expected to lead to more hydropower generation this year, with hydropower providing 14% of the electricity generated in California and 6% of the electricity generated in the Southwest, which covers parts of Nevada, Arizona and New Mexico.
However, higher borrowing costs as a result of prevailing higher interest rates might have had some impact on the clean energy companies’ overall performance.
Q2 Projections
Per the latest Earnings Outlook, second-quarter earnings of the Oil-Energy sector are expected to decline 51.4%. Revenues are likely to decline 29.6%.
Zacks Methodology
Given the high degree of diversity in the clean energy space, finding the right stocks with the potential to beat on estimates might be a daunting task. However, our proprietary Zacks methodology makes this fairly simple.
We are focusing on stocks that have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Our research shows that for stocks with this combination, the chances of an earnings surprise are as high as 70%.
Earnings ESP provides the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our Choices
Below we present three stocks that are expected to come up with an earnings beat this reporting cycle.
Bloom Energy generates and distributes renewable electricity to the residential, commercial and industrial sectors. On Jul 24, 2023, Bloom Energy announced that it is launching Series 10 — a ground-breaking, 10MW fuel cell offering. The Series 10 Bloom Energy Server will enable customers to rapidly meet growing power needs and net-zero compliance at competitive costs and without committing to a long-term contract or worrying about cost increases.
Sunrun operates as one of the leading home solar, battery storage and energy services companies in the United States. On Jun 22, 2023, Sunrun announced that it held a ribbon-cutting ceremony, in partnership with Fresno Housing, to celebrate a new solar installation at Blossom Trail Commons, an affordable housing community in Sanger, CA. The project provides solar energy to 48 homes and saves each family an average of $70 per month on their electricity bills through the use of virtual net metering.
Sunrun, with an Earnings ESP of +61.42% and a Zacks Rank #3 at present, is expected to release second-quarter earnings on Aug 2. The Zacks Consensus Estimate for RUN’s sales indicates a solid 6.4% improvement from that recorded in the year-ago quarter.
SolarEdge Technologies is a leading provider of an optimized inverter solution, which consists of inverters, power optimizers, a communication device that enables access to a cloud-based monitoring platform and in many cases, an additional smart energy management solutions. Apart from these, the company’s core solar product portfolio includes energy storage solution. In June 2023, SEDG unveiled its Commercial Storage System (CSS) at Intersolar Europe, with the product expected to be commercially available in the second half of 2024. Designed for small to medium commercial PV installations, the highly efficient DC-coupled CSS provides 58kWh of battery capacity and is suitable for indoor use.
The company, with an Earnings ESP of +4.58% and a Zacks Rank #3 at present, is slated to release earnings on Aug 1. The Zacks Consensus Estimate for SEDG’s sales indicates a solid 35.9% improvement from that recorded in the year-ago quarter.
SolarEdge Technologies, Inc. Price and EPS Surprise
Image: Bigstock
3 Clean Energy Stocks Set to Beat Q2 Earnings Estimates
Thanks to the enormous energy transition that the entire world is going through amid climate change concerns, we expect modest second-quarter results for clean energy stocks. Solid installation activities, along with increased product shipment and easing supply-chain constraints, amid interest rate impact are likely to get reflected in the companies’ quarterly performance.
A handful of such clean energy companies, particularly those in the solar and alternative energy field, which are part of the broader Zacks Oil-Energy sector, like Bloom Energy (BE - Free Report) , Sunrun (RUN - Free Report) and SolarEdge Technologies (SEDG - Free Report) are likely to have beat on estimates in the ongoing reporting cycle.
Here’s What to Expect
Per the latest short-term Energy Outlook from the U.S. Energy Information Administration (EIA), published in June 2023, solar is a prominent clean energy source that has been the leading source of new generating capacity in the United States so far this year. Moreover, the U.S. electric power sector has rapidly expanded its solar generating capacity by adding 16 gigawatts (GW) of new capacity between June 2022 and June 2023. The industry has also added 8 GW of wind capacity over the past year.
With solar and wind energy constituting a major portion of clean energy expansion, the aforementioned capacity enhancement is expected to get reflected in the companies’ second-quarter results.
Notably, factors like the electric vehicle market boom, declining capital costs for solar panels, wind turbines and battery storage, as well as government subsidies such as those included in the Inflation Reduction Act, are likely to have contributed to clean energy stocks’ quarterly performance.
Also, growing hydropower generation has been driving earnings and revenues of clean energy stocks. As stated by EIA in a May 2023 report, more favorable hydrologic conditions are expected to lead to more hydropower generation this year, with hydropower providing 14% of the electricity generated in California and 6% of the electricity generated in the Southwest, which covers parts of Nevada, Arizona and New Mexico.
However, higher borrowing costs as a result of prevailing higher interest rates might have had some impact on the clean energy companies’ overall performance.
Q2 Projections
Per the latest Earnings Outlook, second-quarter earnings of the Oil-Energy sector are expected to decline 51.4%. Revenues are likely to decline 29.6%.
Zacks Methodology
Given the high degree of diversity in the clean energy space, finding the right stocks with the potential to beat on estimates might be a daunting task. However, our proprietary Zacks methodology makes this fairly simple.
We are focusing on stocks that have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Our research shows that for stocks with this combination, the chances of an earnings surprise are as high as 70%.
Earnings ESP provides the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our Choices
Below we present three stocks that are expected to come up with an earnings beat this reporting cycle.
Bloom Energy generates and distributes renewable electricity to the residential, commercial and industrial sectors. On Jul 24, 2023, Bloom Energy announced that it is launching Series 10 — a ground-breaking, 10MW fuel cell offering. The Series 10 Bloom Energy Server will enable customers to rapidly meet growing power needs and net-zero compliance at competitive costs and without committing to a long-term contract or worrying about cost increases.
The company, with an Earnings ESP of +0.36% and a Zacks Rank #3, is slated to release earnings on Aug 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BE’s second-quarter sales indicates a solid improvement of 29.7% from the year-ago quarter’s reported figure.
Bloom Energy Corporation Price and EPS Surprise
Bloom Energy Corporation price-eps-surprise | Bloom Energy Corporation Quote
Sunrun operates as one of the leading home solar, battery storage and energy services companies in the United States. On Jun 22, 2023, Sunrun announced that it held a ribbon-cutting ceremony, in partnership with Fresno Housing, to celebrate a new solar installation at Blossom Trail Commons, an affordable housing community in Sanger, CA. The project provides solar energy to 48 homes and saves each family an average of $70 per month on their electricity bills through the use of virtual net metering.
Sunrun, with an Earnings ESP of +61.42% and a Zacks Rank #3 at present, is expected to release second-quarter earnings on Aug 2. The Zacks Consensus Estimate for RUN’s sales indicates a solid 6.4% improvement from that recorded in the year-ago quarter.
Sunrun Inc. Price and EPS Surprise
Sunrun Inc. price-eps-surprise | Sunrun Inc. Quote
SolarEdge Technologies is a leading provider of an optimized inverter solution, which consists of inverters, power optimizers, a communication device that enables access to a cloud-based monitoring platform and in many cases, an additional smart energy management solutions. Apart from these, the company’s core solar product portfolio includes energy storage solution. In June 2023, SEDG unveiled its Commercial Storage System (CSS) at Intersolar Europe, with the product expected to be commercially available in the second half of 2024. Designed for small to medium commercial PV installations, the highly efficient DC-coupled CSS provides 58kWh of battery capacity and is suitable for indoor use.
The company, with an Earnings ESP of +4.58% and a Zacks Rank #3 at present, is slated to release earnings on Aug 1. The Zacks Consensus Estimate for SEDG’s sales indicates a solid 35.9% improvement from that recorded in the year-ago quarter.
SolarEdge Technologies, Inc. Price and EPS Surprise
SolarEdge Technologies, Inc. price-eps-surprise | SolarEdge Technologies, Inc. Quote